Term life premiums guarantee lesser periods than the policy

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PostPosted: Tue Nov 08, 2005 6:43 am   Post subject: Term life premiums guarantee lesser periods than the policy  

There are some term life policies available of the duration 20 or 30 years. But the premiums are guaranteed for the periods less than the policy period. Why?

Please suggest.


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seashore
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PostPosted: Tue Nov 08, 2005 11:26 am   Post subject: Non guaranteed premium  

One of the main factors would be cost cutting. Also the associated risk factor reduced along with the cost of the policy as the guarantee period decreases. Ask a good agent to make you understand the difference. And after receiving the policy give a good read to it and ask agent if you have any queries.

evan
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evan

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PostPosted: Fri Dec 09, 2005 5:28 am   Post subject: Non guaranteed premium  

The reason for a term-life policy with a lesser premium guaranty rate is simply because of lower costs. Avoid purchasing those policies for which the guaranty period is less than the policy period. If you need 20 years of coverage, buy 20 year guaranteed premium policy.



Non-guaranteed term life policy provides a pure death benefit protection. The insurance carrier has no obligation to renew the policy and used to cover very short-term obligation (generally a year).


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