Term Life Insurance-Term Life Insurance Rates

Taryn asked:


I am a married woman with no children. My husband does not have benefits through his job, so I carry all the insurances. He does however have a term life insurance policy on himself through an outside company. I am doing my enrollment for my 2010 benefits through my employer. I currently have employer paid basic life insurance and I also have supplemental life insurance, (for extra piece of mind). My question is, in addition to the supplemental life insurance, I also have an option for supplemental spouse life insurance. Does that mean if something happens to my husband my insurance will pay me? I’m confused.

Wiley Colarossi

Procastinating lazy liars asked:


Whether its whole life, universal life, or variable life, when you pay your premiums, your premiums are being paid for two things: 1) Term insurance and 2) Cash value.

At the beginning, most of your premiums are paid toward the cash value. As you get older, term insurance gets more expensive, so less of your premiums goes toward the cash value.

So the notion that says cash value life insurance isn’t Term insurance is not true. Both provide coverage to age 95 or 100. But cash value policies has term insurance premiums that goes up every year, even though premiums as a whole may remain level. But buying term insurance by itself remains level for awhile and only go up when you renew it.

If that’s now how cash value work, then what do you make of it?

Kacie Grismer