Term Life Insurance Ohio OH

Reader’s Question:

I am a housewife here in Ohio. My friend told me that his life insurance company won’t cover him anymore because he’s 60 years old. Will that happen to me, too? I always pay my life insurance premiums on time.

Vanessa

Toledo, OH

Ma’am, let’s not draw hasty conclusions here. Your friend probably has what we call term life insurance and has reached the end of his term. It is called term insurance because it only provides coverage for a specified amount of time. Like, maybe, your friend took 10-year term life insurance ten years ago, so as expected, the contract expired on the 10th year.

What happens usually is before a term life insurance expires, the servicing agent usually calls the insured up in case he wants to convert to a whole life plan, so that he will still have coverage when he gets past 60.

Term life insurance is only offered to people up to 60 years old (in some companies, it’s up to 65 years old). After 60 or 65, both the insured and the insurer have already done what they’ve agreed upon at the start of the term–one paid premium and the other one provided coverage during the covered term.

You have to understand that although your friend gets nothing at the end of his term life insurance, during the term of his contract, he had a guaranteed high coverage at a way cheaper price than a whole life insurance policy.

As for you, ma’am, please make sure that your life insurance policy is not a temporary one. If it is indeed temporary (or term), call up your agent there in Ohio and tell him you want to convert it to a whole life insurance plan. That way, the life insurance premium that you say you pay on time will get to earn cash value and dividends.

Tags: life insurance, life insurance coverage, term life insurance