As a life insurance rider within your policy, having the conversion option in place enables you to convert
your ordinary level term life policy into a permanent life insurance option during the coverage.
Lifetime guaranteed term insurance, also known as guaranteed universal life, differs from
ordinary level term life in that premiums are guaranteed not to increase.
If you are in good (preferred) health and over age 45,
ordinary level term life is more cost effective when comparing total outlays over any 10 year period.
The examples above clearly indicated the huge price discrepancies between the Federal Employee's Group Life Insurance program (Option B Coverage) and
ordinary level term life insurance.
However, when actual FEGLI rates are compared with
ordinary level term life insurance, in most cases, term life insurance is a far better choice.
Not exact matches
The difference between
term life insurance with the return of premium rider and your
ordinary 30 year
level term policy is that 30 years down the line, if he's still alive John gets back $ 49,536!
To see the actual cost difference between
ordinary term life and ROP term see, «Compare Level Term and Return of Premium Term Life.&ra
term life and ROP term see, «Compare Level Term and Return of Premium Term Life.&ra
life and ROP
term see, «Compare Level Term and Return of Premium Term Life.&ra
term see, «Compare
Level Term and Return of Premium Term Life.&ra
Term and Return of Premium
Term Life.&ra
Term Life.&ra
Life.»
Level premium whole life insurance (sometimes called ordinary whole life, though this term is also sometimes used more broadly) provides lifetime death benefit coverage for a level pre
Level premium whole
life insurance (sometimes called
ordinary whole
life, though this
term is also sometimes used more broadly) provides lifetime death benefit coverage for a
level pre
level premium.
The difference between
term life insurance with the return of premium rider and your
ordinary 30 year
level term policy, however, is that 30 years down the line, if there's been no death, John gets back $ 49,536!!
Because
term premiums increase at each renewal, at the later ages the premium cost will far exceed the
level premium that would have been charged for an
ordinary whole
life policy issued at the same age as the original
term policy.
The family package policy consists generally of some
level of
ordinary whole
life insurance on the principal breadwinner, half that amount in
term insurance on the spouse, and about half that amount again of
term insurance on each of the children.
However, later, as
term premiums rise while the premiums for
ordinary life remain
level, the reverse typically will be true.
One can view
ordinary level premium whole
life mathematically (but not legally) as a combination of decreasing
term insurance and increasing «savings fund.»
If the
term «whole
life» is used alone, it is generally accepted that the reference is to
ordinary level premium whole
life as opposed to any other type of lifelong policy.