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Renewable term insurance question

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  • Renewable term insurance question

    Has anyone gone for a term insurance life product where once the term period is over, one could continue to renew the term, if one wanted to, at the same cost, but with an annually decreasing death benefit. The ideal scenario here would be say one wants the flexibility to drop the insurance if not needed. However, if one had a health issue which made them uninsurable ( during the course of the term life), and they still desired their family to have some type of life insurance death benefit. Its coming out to be around 20 dollars extra per year.

  • #2
    Yes, you're referring to the Protective Life "Custom Choice UL" product, which is a Universal Life policy that is designed exactly like a Term policy, where the death benefit and premiums are level for a period of 10-30 years.

    It works the same exact way a traditional Term policy where the premiums and death benefit are level for a period of 10-30 years. The only real difference is that at the end of the 10-30 level period, the death benefit just decreases, but the annual premium stays the same. It's a great policy, as it's usually priced within the top 5 lowest carriers, but it also gives you the added benefit of continuing with the policy past the initial term period, should your needs change. You also don't have to medically re-qualify, which is great as well.
    Jason P. Veirs - Life and Disability Insurance Broker located in San Diego, CA - Owner of www.InsuranceExperts.com
    Office Direct: (619) 334-2400 | Email: [email protected]

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    • #3
      Thank you.

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      • #4
        The other option which I use often is with most carriers that raise rates at the end of the term lock period is to simply drop the face amount of the policy to the amount of coverage you can buy with the premium you had been paying.  That is the manual way to do the same thing but it allows for the coverage to stay larger if you want it to.  Think about a person with 12-24 months or so to live, end of policy, as the consumer you might want the option to keep the death benefit higher and pay a higher premium vs. having the death benefit automatically drop to the amount the premium currently being paid affords.  Just an idea that keeps more options on the table for the consumer in my opinion.
        Scott Nelson-Archer, CLU, ChFC
        303-953-0263 Direct / [email protected]

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