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Patsy Said:

Can a 20 year term life insurance increase their premium after 10 years?

We Answered:

RIght. You've answered your own question.

You bought a 20 year term policy, but the premium was only guaranteed, for the first ten years. It WILL go up every year after that.

If you had bought 20 year LEVEL term, the premium would have been the same, guaranteed, for all 20 years.

It's standard for the product you BOUGHT. Me, I wouldn't buy that product. I'd want my premium guaranteed for all 20 years. Me, if I were in your shoes, I'd start shopping around, and see what I could by 10 year level term for, or even 15 if you think you might want it a bit longer than 10 more years.

Patrick Said:

What do you meant by Return of Premium (ROP) Term life insurance?

We Answered:

In Term assurance policies Risk is covered during the term of the policy.

Nothing is payable at the end of the selected term if the policy holder survives the term.

There is a feel of 'paying for nothing'. This makes Term assurance plans less attractive.

In Return of premium term life insurance, Premiums paid during the term of the policy is returned back to the policy holder at the end of the term.
These types of policies has gained acceptability among the insuring public.

Sean Said:

what does it mean in a life insurance term "premium paying"?

We Answered:

The premium is the price you pay for coverage, premium paying means you are still paying. Some life plans only need premiums to be paid for 30 years or so and then the dividends and cash value are high enough to pay the premiums. This would be a onn premium paying policy

Morris Said:

If a company pays the premium on a term life insurance policy, can the beneficiary be anyone?

We Answered:

to the first poster, Insurable Interest has absolutely nothing to do with the designation of beneficiaries. Insurable interest refers to whether a person can or can't purchase insurance on another individual. When it comes to beneficiaries you can leave the money to a complete stranger if you want, it doesn't matter.

To answer the question...In most cases if this is a policy where the company owns the policy on the person and it's not a group/employee benefit the company would decide who the beneficiary is (In 99.9% of cases the company itself is the beneficiary so the money can be used to train/hire a replacement for this person). As mentioned this is known as key person insurance, where the company is basically saying "We have insurable interest in this person becuase they are a key factor in the success of this company and if this individual dies we will incur a significant loss in business and it would take a substantial amount of money to replace this person"

If this is a policy that is some kind of benefit for working there like employee benefits like Medical and dental, then the employee would be able to elect whom ever they want as the beneficiary.

Edgar Said:

what do you think about state farm's return of premium term life insurance?

We Answered:

ROP insurance is great if you want to get some kind of extra value from a term life insurance product, but I wouldn't use State Farm's insurance for it. ING has the most competitive ROP Term insurance available in the market right now. The ROP is mostly extremely useful if you're young, since the chances of you dieing are much lower. That's the main complaint with term insurance, that many people outlive the policy. With the ROP with ING you have two options. Get the money back, or put that money into a permanent small policy that you wouldn't have to pay another dime for. That's the option that most people end up doing.

IE You get a 30 year ROP Term policy with ING. After 30 years, you're still alive and you paid $50,000 throughout the 30 years. You can either get a large portion of the $50,000 back, or you can switch it into a small life insurance policy that you can use for whatever purposes you want.