Term Life Insurance premium question

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SteelMagnolia
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Joined: Wed Jul 20, 2016 8:54 pm

Term Life Insurance premium question

Post by SteelMagnolia »

My husband recently completed underwriting for a 30 year 1,000,000 term life insurance policy through Farm Bureau. When we received the policy documents today, there is a statement that basically reads " while we fully expect the premium to remain level for 30 years, the current premium is only guaranteed for 10 years. After that, we will charge you no more than the max based on your age, etc". Now, it was our understanding when we were shopping for policies that a "term" insurance product was a set premium for the duration of the term. Were we incorrect in our thinking or is this an unusual provision in this policy? Could this provision be changed? We have been unable to reach the agent writing the policy. Any guidance or insight would be appreciated. We really don't want to shop/underwrite/etc. again if we don't absolutely have to. Thanks.
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Nate79
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Re: Term Life Insurance premium question

Post by Nate79 »

SteelMagnolia wrote: Tue Jul 17, 2018 9:19 pm My husband recently completed underwriting for a 30 year 1,000,000 term life insurance policy through Farm Bureau. When we received the policy documents today, there is a statement that basically reads " while we fully expect the premium to remain level for 30 years, the current premium is only guaranteed for 10 years. After that, we will charge you no more than the max based on your age, etc". Now, it was our understanding when we were shopping for policies that a "term" insurance product was a set premium for the duration of the term. Were we incorrect in our thinking or is this an unusual provision in this policy? Could this provision be changed? We have been unable to reach the agent writing the policy. Any guidance or insight would be appreciated. We really don't want to shop/underwrite/etc. again if we don't absolutely have to. Thanks.
You should be shopping for a 30 year level term policy thru a third party broker site, a few of which are commonly mentioned on here. Sounds like your agent is trying to slip a fast one on you. That is most definately not a 30 year level term.
BruDude
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Re: Term Life Insurance premium question

Post by BruDude »

Some companies have policies that are only guaranteed for part of the term, though it is very uncommon. Effectively, you have a 10-year term policy based on the guarantees. Farm Bureau is generally not competitive on life insurance from what I have seen. "Captive" insurance companies like Farm Bureau and State Farm usually don't compete very well with the industry leaders like Banner Life/American General/Prudential/etc.
cashmoney
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Re: Term Life Insurance premium question

Post by cashmoney »

SteelMagnolia wrote: Tue Jul 17, 2018 9:19 pm My husband recently completed underwriting for a 30 year 1,000,000 term life insurance policy through Farm Bureau. When we received the policy documents today, there is a statement that basically reads " while we fully expect the premium to remain level for 30 years, the current premium is only guaranteed for 10 years. After that, we will charge you no more than the max based on your age, etc". Now, it was our understanding when we were shopping for policies that a "term" insurance product was a set premium for the duration of the term. Were we incorrect in our thinking or is this an unusual provision in this policy? Could this provision be changed? We have been unable to reach the agent writing the policy. Any guidance or insight would be appreciated. We really don't want to shop/underwrite/etc. again if we don't absolutely have to. Thanks.


Seems like this is a Universal Life policy
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BL
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Re: Term Life Insurance premium question

Post by BL »

Check with an Independent insurance broker that will shop several companies for you based on your health, etc. Term4sale.com is an on-line place to at least get a quick estimate based on age and state, but you can also get a broker there as well.

You want a LEVEL term for X years, not one that increases in the future!

"Bait and Switch" is not an honorable way to sell insurance. I expect the commission is greater with the one they came up with.
BruDude
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Re: Term Life Insurance premium question

Post by BruDude »

BL wrote: Wed Jul 18, 2018 12:53 am Check with an Independent insurance broker that will shop several companies for you based on your health, etc. Term4sale.com is an on-line place to at least get a quick estimate based on age and state, but you can also get a broker there as well.

You want a LEVEL term for X years, not one that increases in the future!

"Bait and Switch" is not an honorable way to sell insurance. I expect the commission is greater with the one they came up with.
The commission is actually lower for this type of product than a regular 30 year term.
fundseeker
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Re: Term Life Insurance premium question

Post by fundseeker »

Glad you caught that now and not in 10 years! What a ripoff! Level term may be the phrase you should be looking for. And there is a reason your Agent is no longer wanting to hear from you - he left out some very important information when he sold you that junk. It'd be worth getting quotes online and selecting the highest rated insurance company.
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SteelMagnolia
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Re: Term Life Insurance premium question

Post by SteelMagnolia »

Than y'all so much for your replies! I was afraid when I saw the policy that something just didn't seem right. We are still trying to get in contact with the agent to see what his explanation is for the policy. We have also decided to contact an independent broker locally to see what other options/prices that are out there. Thank y'all again!
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