Party On! The finer points of term life insurance policies
October 10, 2008 6:24 AM Subscribe
Life-Insurance-Filter (again): There have been some good threads in the past on understanding/buying life insurance, but I wanted to get a bit more specific this time around.
To supplement my current coverage, I've decided to buy a term policy (possibly renewable), the duration and amount of which will fit my situation. What I wanted to get some insight on are the finer points of these policies. That is, if there are specific "fine print" items to look for (or conversely, to look out for), I'd like to know what those are.
Of course, it's not just the fine print I'm interested in - I'll be evaluating the overall value of the package, based on coverage, price, rating/health of the company (!), etc. Just curious about any additional differentiators I should consider that might influence my overall decision. Thanks!
To supplement my current coverage, I've decided to buy a term policy (possibly renewable), the duration and amount of which will fit my situation. What I wanted to get some insight on are the finer points of these policies. That is, if there are specific "fine print" items to look for (or conversely, to look out for), I'd like to know what those are.
Of course, it's not just the fine print I'm interested in - I'll be evaluating the overall value of the package, based on coverage, price, rating/health of the company (!), etc. Just curious about any additional differentiators I should consider that might influence my overall decision. Thanks!
Best answer: Term policies, as you may know, are the simple type. It's pretty much just insurance - there is no "cash value", no saving plan attached, none of the garbage you get with a "whole life", "cash value", or "universal" plan. One exception is a "return of premium" term policy - which is a non-term plan disguised as such. There shouldn't be a lot of fine print, just a term, rate, exclusions, etc. - there shouldn't be a lot of complicated extras tacked on. Of course rate, coverage, etc are going to be a factor in your choice, but also try to go with an agent you feel you can trust - perhaps a recommendation from a friend or family member. Consider whether they are trying to sell you insurance or trying to set you up with the right policy for you.
posted by attercoppe at 9:42 AM on October 10, 2008
posted by attercoppe at 9:42 AM on October 10, 2008
This thread is closed to new comments.
posted by MarkAnd at 6:41 AM on October 10, 2008