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Quick query about life insurance....?

Ok, i just got a quote for life insurance, thing is it says it will be paid out if i die before a certain age. What happens if i die past that age? Do the company just keep all the money?

Public Comments

1. You probably received a quote for a "term" policy. The term is period of time (10 years, 15 years, etc.). The premium is fixed for the term. At the end of the term, you have two options: 1. Cease to pay any more premium - thus the policy expires. 2. Agree to pay additional premiums - these premiums are exorbitant in comparison to a new term policy. So, the answer to your question is: If you die after the expiration of the policy, the life insurance company won the bet, adn profited.
2. It sounds like you received a quote for level term life insurance coverage. Term life is temporary life insurance which usually lasts for 10, 15, 20, or 30 years. If you outlive the term of your policy the coverage expires. Renewable term life insurance allows you to renew the coverage at a new, higher rate when your current policy ends, without taking a medical exam. Return of premium term life insurance returns the premiums you paid, less any expenses and fees, if you outlive the term of your policy. However, return premium term life insurance costs a lot more than level term life insurance. I hope that helps. Best of luck to you.
3. This sounds like a term policy. You guessed it. IF you don't die with in the term (when the policy expires, when you hit a certain age), the company just keeps the premiums. Think of it like renting a house. You have no equity. If and when you move out, you just hand back the keys and thank the landlord for the tempory coverage. You get no cash back. If you are looking at providing coverage that does not expire look at Whole Life insurance. It will be more expensive, but at least you're getting something that you will have a better chance of using. Obviously depends on what you need it for though. They are different products for different purposes, there is no one size fits all approach.