Specializing inInsurance coverage litigation issues

Term Insurance

Term insurance is the opposite of Whole Life Insurance, in that it does not accumulate value, the coverage terminates upon failure to pay the premiums, and it is not automatically renewable at the end of the proscribed term, whether it be 5, 10, 15 or 20 years, and sometimes longer. These policies are generally less expensive than whole life policies, and are perfectly placed as supplemental coverage to a whole life policy, such as where the policy holder wants to be certain that his children will have the college paid for should he suffer an early demise, but at significantly less cost than a whole life policy.

A major issue with these policies is that at the end of the term the coverage will not be renewed unless the policy holder is medically insurable. And, of course, the premiums will be higher at renewal, just based on the increased age of the policy holder. At renewal, if the policy holder has any medical issue which affects the risk to be insured, his life, then the policy may not be renewed or may be renewed with a rating such that the premiums will be higher than that based on age, alone.

Another distinction from whole life policies, then, is that the premium of whole life policies remains the same for the life of the policy holder, or until the policy becomes fully paid. And, as long as the premiums are being made and/or the accumulated cash value is sufficient to pay the premiums, then the policy will continue in force. With the term policy, however, if the premiums are stopped the coverage terminates; if the term concludes, the insurer may, or may not, renew, and the rate for doing so will likely be adjusted - upward.

Call or email Barry M. Feldman, and let him provide the assistance you require.