If I sign up for term ,000 for 30 years, and I die in lets say 5-10 years would my family receive the ,000 or would they receive whatever I paid into the ?

 

  • Hadley 9:04 pm on March 9, 2010

    If you buy term life insurance for 30 years, and you die within the term of the policy, within that 30 year period, your family (whoever you name as beneficiary) would receive the $75,000 death benefit from your term life insurance policy.

    A life insurance policy usually has an Incontestable Clause, meaning after the policy is in force for two years, the insurance company cannot void it because of misrepresentation or concealment by the insurance (you) in obtaining the policy.

    Also, each policy usually comes with a two year Suicide Exclusion. In some states it is one year. After that period, the insurance company even pays for suicide.

    Not that these things will happen, but there are exclusions and clauses within the policy you should be awar of. It’s always a good idea to read the policy, ask about the exclusions, and any other questions you have before you buy a policy.

    Best of luck to you and your family!

  • StephenWeinstein 9:05 pm on March 9, 2010

    $75000

  • hazydaisy 9:05 pm on March 9, 2010

    They would receive the full $75,000.

  • Chriss32 9:05 pm on March 9, 2010

    Your family would receive the death benefit and not necessarily what you paid into it. However, make sure you look over the policy carefully, because some of them the death benefit can go down after you have had it for a while. Make sure it is a level term policy.

  • sophieb 9:05 pm on March 9, 2010

    each policy is different; you’ll need to read the policy AND the fine print. I suggest both you and your spouse read it and ask your attorney if you have any questions as well as asking the agent.

    When I was a kid my Dad took out a life insurance policy on me; when I was middle age he wanted to give me a gift so instead he gave me the original life insurance and told me there should be about $5,000 in there (it was just a small policy). He instructed me to "just cash it in"…so I did. I got $500. I told my Dad and he said to return that check to the agent and ask to continue the policy since clearly something was wrong. Well the new policies were even stricter with a lot higher premiums and, the agent said he was right about the $500. Both my Dad and I were very disappointed. There must have been something in the fine print.

    If you have a home maybe there is a kind of insurance you can get so that if you pass then your family will have the house free and clear. In addition you might want to put your money into a Roth IRA and contribute $1,000 or more each year. I just don’t feel right about life insurance. But, read the fine print. You might also want to see what the rate of interest is on mutual funds, or savings bonds, or even steady savings accounts. Sometimes if you get a savings/checking account with a bank they will offer their customers $10,000 free in life insurance. You might also want to check into Aflac for if you become unemployed or disabled.

  • mbrcatz17 9:05 pm on March 9, 2010

    They receive the $75,000.

  • insuranceguytx 9:05 pm on March 9, 2010

    Your beneficiary would get the full $75,000.

    That is a very low amount of insurance. Have you met with an agent lately to discuss your total insurance needs?

    Make an appointment today.

  • LifeInsuranceAgent 9:05 pm on March 9, 2010

    $75,000.

  • Mark S 9:05 pm on March 9, 2010

    $75,000. That is the beauty of term insurance. Most companies will pay during the medical check period- this would be a conditional receipt, coverage until final acceptance. What you paid in you don’t get back.

  • Bryn Reid 9:05 pm on March 9, 2010

    They would get paid the full $75,000 but make sure the details of the insurance are in your favor. Some companies attach riders which state you have to die a "certain way" for them to payout. Primerica is a good life insurance company to have and I have a policy through them. They are rated A on S&P and Moody’s and pay out no matter what the situation is.