Advantages
and Disadvantages of Lifetime Guaranteed Term
Lifetime guaranteed term insurance, also known as guaranteed
universal life, differs from ordinary level term
life in that premiums are guaranteed not to increase. It
is a great fit if you need inexpensive coverage that you
will not outlive. Following are some of the advantages
and disadvantages of term insurance guaranteed for life.
Instant
Lifetime Guaranteed Term Insurance Quote
Advantages of Lifetime Guaranteed Term Insurance
- Guaranteed Rates and Benefits. Lifetime
term offers rates that are guaranteed not to increase
as long as premiums are paid timely. Additionally,
the insurance amount remains the same for the life
of the policy.
- You Can’t Outlive It! Unlike
level term insurance, lifetime guaranteed term coverage
assures that as long as you pay your premiums on time,
it will pay a claim when you die. Most folks
outlive level term insurance because they drop it once
premiums increase!
- Lifetime Term is the Most
Inexpensive Form of “Whole Life” Insurance. Lifetime
term does not build cash value. You only pay for
the guaranteed insurance costs which dramatically
reduces the cost relative ordinary whole life insurance.
- Flexibility. Term
insurance with a lifetime guarantee can be designed
to meet your specific needs. You can increase premiums
and get a “paid-up” policy.
Also, some companies will allow you to “dial-in” a
guaranteed rate to a specific age.
- Easy to Understand. The
concept of lifetime term is simple. You pay a fixed
premium for a fixed amount of life insurance and both
your premium and death benefits are guaranteed for
your lifetime as long as premiums are paid on time.
Disadvantages
of Lifetime Guaranteed Term Life Insurance
- More Expensive than Level Term.
Since coverage is guaranteed for life, you will have
to pay more to get it!
- Very Little Cash Value. Most whole
life policies build cash value over time. Lifetime
guaranteed term builds minimal cash value that decreases
over time. Because the primary focus is on the lowest
possible price, cash value usually erodes within the
first 10 policy years.
- Premiums Must Be Paid
on Time to Maintain the Guarantees. Many permanent
life insurance policies offer flexible premium options.
However, with lifetime guaranteed term, it is imperative
that you pay the required premiums on time. If a premium
payment is skipped or missed for any reason, you
may very well lose the lifetime guarantees!
Summary
Lifetime guaranteed term, commonly referred to as universal
life, is by far the best type of life insurance if you
are seeking inexpensive coverage for you “whole
life”. If you are shopping for life insurance,
you should definitely consider lifetime guaranteed term
when comparing options. Before making any policy choice,
you should always weigh the advantages and disadvantages
of each alternative. One of the most important considerations
is your choice of life insurance agent. MEG Financial
offers many types of life insurance including term insurance
guaranteed for life. We represent over 80 life insurance
companies and can help you select the best life insurance
policy. Call MEG Financial today at (877) 583-3995
for questions or to request a free term insurance quote!
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