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Term life insurance. quick curious q?

Term Life Insurance & Whole Life Insurance Discussion

Term life insurance. quick curious q?

Postby caspar » Sun Oct 28, 2012 5:06 pm

If you buy a term life policy for, say, 20 years, then develop cancer in 18 years, will the insurance company re-write your policy when the policy expires?
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Term life insurance. quick curious q?

Postby yehoash » Sun Oct 28, 2012 5:20 pm

For a standard term policy the answer would be no, they would not renew the policy upon expiration of the term.

I have seen some term policies where you have the option to continue coverage on an annual renewable term basis with exorbitant rates that increase significantly every year thereafter.

Some policies offer an optional guaranteed renewability rider that guarantees the policy can be renewed after 20 years. Naturally at rates that are higher than the previous 20 years. The original rate proposal will show the projected rates for the second 20 years.

It all depends upon what you buy so you have to choose your term policy carefully. This is often an unanticipated pitfall for people that prefer the "do it yourself" approach to insurance, they are unaware of the options available and instead go solely on the basis of the lowest cost product.
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Term life insurance. quick curious q?

Postby sebastian » Sun Oct 28, 2012 5:24 pm

If you buy a "guaranteed renewable" rider at the time you purchase your insurance, yes. The rate goes up, of course, but at least they'll write it.

Odds are, though, if you invested the difference for 18 years in price, between the term and a whole life policy, you'd have that face amount in your investment account, and would be "self insured".
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Term life insurance. quick curious q?

Postby chavatangakwunua » Sun Oct 28, 2012 5:33 pm

I think 30 year term is better.
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Term life insurance. quick curious q?

Postby brynn77 » Sun Oct 28, 2012 5:38 pm

I think 30 year term is better.
normally = nope
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