Term Life Insurance Companies

Most Companies Don't Limit Themselves To Term Insurance

Home

There are very few life insurance carriers that could be categorized as term life insurance companies. In other words, very few companies sell term life policies alone. Most carriers, especially the large ones, sell more permanent life insurance than term insurance. To suggest that term is more popular is a myth.

Term insurance may be the first policy that an individual buys because it is so cheap. You need to protect your new wife so you buy $1,000,000 term insurance. You have a new baby so you buy an additional $500,000 term policy.

You start a business and you become aware of the great need for life insurance to fund a buy sell agreement so you buy some term insurance as it is the least costly policy.

You progress in life and here is what happens. You are in good health so you ask yourself the question, why am I paying this money for term insurance? It will pay only when I die. Why not convert the policy to a permanent policy which I can use as sort of a cushion in case I need some cash? You call in your agent and you convert to a permanent policy which you keep for the rest of your life.

For this reason the highly successful life insurance carriers do not limit themselves to term life insurance. There are very few term life insurance companies as such. Life insurance companies want to sell term life of all types, universal life, variable universal life, variable life, whole life and even some disability insurance.

When you see these companies promoting term policies online you need to understand that they sell the other types, not only term. When you sign up you will likely get a call from a representative. Just ask about other types of life insurance and they will be quite willing to give you some information on them.

Use term life insurance companies as a temporary measure. Anticipate that you will buy some permanent life insurance in the future, possibly a modified life insurance policy or a universal life policy.