The ONE thing you must know about your term life insurance policy-
There is almost no chance that your term policy will ever pay a death benefit.
Whoa! Why? Is it because they won’t pay the claim? Absolutely not: If there is a legitimate claim, they will pay it. Believe me, your life insurance company has the money.
So why would I say this?
Because term life is a temporary policy that is designed to cover you during a certain amount of time (10- 30 years) and then expire worthless. Truth is, most term policies are outlived or cancelled before the term expires. Only 1% of all Term Life Policies will ultimately pay death benefits (Penn State University Study 1993).
So what’s the issue?
If the above bothers you because you bought your Term Life policy to leave a legacy to your family, you need to act now to get a life program in place that will fulfill your wishes. Term life insurance is the most widely owned and, in my opinion, least understood life insurance policy on the market.