Be a Winner - How to Buy Term Life Insurance Post-Triple-X

By Bob Barney, President of CumpuLife Software, Inc.
January 1, 2000

What to Look For When Considering Term Insurance Policies.

There are life companies selling level term policies that do not guarantee premiums for the initial level period of 10, 20 or 30 years. You must make sure that the product you buy is fully guaranteed for the initial level period.

Whole Life vs. Term Life Insurance

Most life insurance buyers do not need lifetime "whole life" insurance. The reason is simple: Most of us buy life insurance to address the financial loss to our dependents if we die.

What is "financial loss"?

For most people, it is the loss of a breadwinner's income. If you earn $30,000 per year, money that your family depends on to live, then that paycheck will be gone if you die. However, this problem does not last for your whole life (which is why most people do not need whole life).

Retirement.

Most people plan to retire at age 65. At that point you stop working. At that point you stop earning a pay check. Where will your paycheck come from if you stop working? Your paycheck, if you retire, will come from sources such as pensions and retirement savings. If you have planned your retirement properly, then that income (or most of it) should continue to go to your spouse if you die. Therefore, if you and your spouse can live on that money together, don't you think just one of you can do so? Incidentally, retired people rarely have dependent children.

If the surviving spouse has the income (s)he needs, why would you need life insurance after you retire? Most people do not, although there are other reasons for life insurance that will not be addressed here. Suffice it to say, most consumers need term life insurance, and level term is the best kind to buy.

Therefore, the longest period of time that you would need to buy life insurance is to the point that you retire. If you are age 45, for example, and you need term insurance to age 65, then it would be a good idea to buy a 20-year term policy with a full 20-year premium. By doing so, you will have purchased what should be the last term policy you will ever need to buy. Therefore, if you take advantage of current pre-Triple-X policies still available as of this writing, the higher cost of Triple-X should not affect you, because you will have purchased the last term insurance policy you would intend to own.

If you are 35 years old, then you might want to purchase a 30-year Guaranteed Term Life Insurance policy. If you are 50 years old, you might want to consider a 15-year Guaranteed Term Life Insurance policy; whatever it takes to get you to the point you stop working.

What About Your Dependent Children?

In the case of my young adult children, I have acted, and I am still acting, to buy level term policies that guarantee future premiums for 40 years. While I would normally not insure my children (they are still dependent and do not contribute to our family's finances), I know that Triple-X will eliminate their ability to get today's guarantees, at today's prices. Knowing that they will need insurance in the future, I am safeguarding their future by guaranteeing their right to have fully guaranteed level term insurance now - while I still can. I urge all young adults to do the same.

Take advantage now of your last chance to lock up pre-Triple-X premiums from insurance companies that are still offering them. Call us today at 800-400-4832 and speak with an ITECH advisor, or email us your inquiry.