Tell Me Again The “Advantages” Of Term Life Insurance!

Everywhere you look there are advertisements for the best rates for the highest “death benefits” possible for Term Life Insurance.  They say that “Brad is a smoker and yet we got him $100,000 life insurance for ONLY about a dollar a day”. That all sounds very good when you’re 35 years old, and you have a family to think about, etc etc.   HOWEVER, did ANYBODY tell you what happens to those term life insurance premium rates as you get older and older and older?  As you reach senior citizen ages, you STILL have term life insurance that you are paying DEARLY for – if you choose to hang on to it.  And, yes, you DO still need some kind of life insurance because upon death, there will be those nagging final expenses – funeral expenses, pay off of any credit card debt and any other expenses that seem to pop up at that time.

Here’s what slapped US in the face a few weeks ago!  One of our sons stopped by and happened to ask if we’d thought about doing any kind of funeral arrangements for ourselves in order that OUR wishes would be granted at the time of death and not kids arguing about “not a nice enough casket” or other things that can break a family apart.  After all, we DO have that “term life insurance” that sould be sufficient to cover any expenses.  So he then asked what we were paying for the term life insurance policies, and I said I’d check in a day or two so we’d know for sure.

Here’s the “breakdown” of that “about a dollar a day” term insurance and how it is nearly bankruptcying us in our older years to pay for it.  We took out a $50,000 TERM LIFE INSURANCE policy on my husband when he was 49 years old and as they said the premium was “about a dollar a day” — or $35.00 a month.  We had the premium set up as a bank draft, so there was no way to forget to pay it, or even pay it late.  Here’s how those  “term life insurance” premiums have gone up——–

Age 49 – wrote the policy — $35.00 per month
Age 60 – premium jumped to $69.00 per month
Age 65 – premium jumped to $148.00 per month
in 2 years when my husband will reach age 75, the premium will JUMP to $743.00 per month

Now you tell me — how many SENIOR CITIZENS, on a fixed income, can afford those kind of premiums?????

We immediately went down to a funeral home and made all the funeral arrangements that WE wanted, paid for it all (did you know that funeral expenses DOUBLE every EIGHT years???), then immediately canceled the bank drafts for both insurance policies (mine and my husbands).  We’ve taken the insurance premium money, opened a money market account at a federal credit union, and are having THAT money auto drafted from our checking account, and THAT will become our “insurance” policy for those unforseen expenses at the time of our death (our funerals have already been taken care of and paid for). 

It is MY opinion that if some insurance agent would have actually explained how the older you get, that “about a dollar a day” increases to “about $25.00 a day” and even MORE, we certainly SHOULD have been asking about a “whole life” policy with premiums that never go up — and even better, the longer you have a whole life policy, you even can gain cash value with it!

Oh, and get this —— if my husband should live to age 80 (and he’s in perfectly good health as we speak) – his MONTHLY term life insurance premiums would JUMP to $1,410.42.

That “cheap” term life insurance policy might be great for those years while your kids are in school and takes a bundle of cash to feed, clothe and house them —- but think about how those rates continue to JUMP and JUMP and JUMP the older you get and you still have nothing except term life insurance —- nothing that would eventually be a “paid up” policy or even one that gains cash value ——- all the “cash” goes into the pocket of the insurance company. 

I would suggest that you check YOUR insurance policies and if you’re getting past the 40 year old age range, check what you can get for a whole life insurance policy and get rid of that term life insurance policy — the older you get the LESS you’ll be able to get for a whole life insurance policy and the MORE you’ll be paying for that term life insurance policy!

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