Term Life 95 Insurance offerred by American Fidelity Assurance. Good product? Or stick with 30 year term?

Question

They offer a 95 term but it's a decreasing term life insurance but it appears to be guarantee till you turn 95 years old. Anyone heard of this product? Any opinions?

Answer 1

These types of term plans are great alternatives to expensive cash value policies. This vs 30 year term is a toss up. It really has more to do with your age debts and needs. If the price is close you may want to go with the TL 95, you can always cancel it at 30 years or any time for that matter.

I have never had a beneficiary tell me they don't need the money.

Many people will tell you you won't need life insurance after your 30 yt expires. That is sound in theory but many people buy life insurance into their 50's and 60's some even later.

Sorry I can't be more helpful.

Answer 2

I would compare that product to a level death benefit secondary guarantee universal life that runs out at age 95.  In my experience, decreasing term products to 95 should be less expensive in theory, but the lack of a competitive market place tends to keep the price high.  Guaranteed UL, on the other hand, is a very competitive market, and they are not designed for significant cash accumulation, keeping costs lower.

The real question in my mind is how long you actually need coverage.  Another benefit of the guaranteed UL is that the agent can dial in an exact age the policy should lapse, so if you needed coverage until age 93 or 96, you could get it.

Once you define your need, consider a few different scenarios to find the one that fits best for you.