Information On Life Insurance

Reading a Term Life Insurance Illustration or Spreadsheet is always as straightforward as it may seem. The following factors are important to consider when evaluating and comparing term life insurance illustrations. Usually only a few of these will apply to a particular policy, also some are rarely, if ever used:

Cash Value - this policy generates a guaranteed cash value aft a certain year.

Conversion/Exchange Option - Term Life Insurance Policies a usually convertible for a specified number of years or to a specified age. The number of years varies from company to company Convertible means the policy owner has the right to exchange the policy for a permanent insurance policy regardless , changes in health or finances and with no suicide and contestable periods (a period where the policy is negated if the insured commits suicide or there is fraud). If the policy is converted, the ne policy will be issued with the same rate classification as the ter. policy. Some carriers will you a number of choices to convert t while some limit you to one policy (this can sometimes the company’s less competitive policy). Oftentimes there is conversion credit (i.e., reduction in first year premium).

Current with Re-Entry Premiums - assumes the purchase of brand new policy, with premiums based on then current rates the insured’s attained age, with the insured providing evident of insurability. Rates shown assume the insured re-qualifies Ii the same rate classification. Re-entry is assumed to occur at the end of the policy’s level period or year 10 for ART/YRT products. Note that there may or may not be a new suicide and contestability period. It is important to understand that, if the policy holder’s health declines by the time of re-entry, he/she may hat to pay higher premiums than the “With Re-Entry” premium shown in order to purchase a new policy. In addition, if d insured’s health declines substantially, the insured may not be able to obtain a new insurance policy at any price. Carriers without re-entry provisions would not show after the initial level period