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life insurance question?

I am looking for term life insurance, meaning the rate would would locked for 30 years regardless of my husband and I getting older. I just have couple questions, i am hoping someone would shed some light: what does this mean??: The Select-a-Term provides a level death benefit term to age 95 also what does this mean? Current premiums are guaranteed level for the first 15 policy years. if i am selecting 30 years, why are they only guaranteed for 15 years? also, what else should I be looking for? thank you!

Public Comments

1. A level death benefit term to age 95 means you would get the same death benefit today as you did if your husband died at age 94. Double check that, that is a term policy...here in NYS we have limits on how old you can be and still have a term policy...just verify it is ok in your state of residence. Current premiums guaranteed level for 1st 15 years means in the 16th year they are more than likely going to be substantially higher than the level 15 year premiums. If you need the insurance for 30 years than get a guaranteed level 30-year term policy. Remember that term insurance will become cost prohibitive as the level premiums go away and you age. If you need coverage for your entire lives and don't wish the premiums to go up look towards a permanent insurance product. Good luck.
2. Straight term life insurance will have a level premium and level death benefit for the duration of the policy whether it is 10 years, or 30, or any other period. Premiums are the price you pay, level means that it is unchanging and will not increase. Level death benefits are the amount paid to the beneficiary and also do not change as they will with whole life policies because there is no cash value. If you want a locked rate, whole life policies can also provide level premiums and a death benefit that is guaranteed to be a minimum, but possibly higher rate because portions of your premium are invested by the insurer and profits are reflected in your cash value (which you can also borrow against- called a surrender). Term does not carry cash value, but has level premiums and death benefit. Whole life has level (but more expensive) premiums, a guaranteed death benefit minimum which will likely be much higher, and the ability to generate cash or create an estate. Hope this helps.
3. Then it is not in fact a 30-year fixed term policy.
4. The "term to age 95" means that the death benefit will remain level and your coverage is guaranteed until age 95. That does not mean that your premium is guaranteed until age 95 or that it will remain level until age 95. I think what you are looking at is a level term product where the current rates are level for 30 years and the guaranteed rates are level for 15 years. That means that the company expects to charge you the current rate for 30 years, but they have the right to raise the rates to the guaranteed rates during years 16-30 if they have negative experience. They couldn't just pick on you and raise your rates. They would have to raise the rates on the whole group of policies like yours. After the 30 years there is probably a very steep annually increasing rate scale until age 95. If you want thirty years of level premiums then I suggest finding one of the many companies that sells a guaranteed level 30 year term product. The rates will not be that much higher and it is better on something like this to know what you are going to have for the next 30 years. At age 55 it may be tough to get a 30 year level rate, but I think there should be some companies out there.
5. You should be working with a local agent. You just need 30-year level term and that is not what you are looking at. There is no web site or 1-800- number that can sell it for less than your local insurance broker can. Use the agent's services, they are free.