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What is your objection to term life insurance?

Published 12:09am Sunday, January 16, 2011

One objection to purchasing term life insurance is just that: when the term is over, the policy is finished. That’s it. No more coverage.

Many people I’ve talked with about term insurance worry they will outlive the policy period and “waste their money” on something they didn’t need. It can be difficult to counter these arguments except by explaining how term insurance can be an affordable way to provide life insurance coverage for a specific time period.

Until now. Insurance companies are offering term policies that actually return the premiums you’ve paid after the level premium period ends. In other words, if you purchase a 20-year term policy and are still living when the 20-year level premium period ends, the premiums you paid will be returned to you, in many cases free of federal income tax.

Those returned premiums can have a number of uses. If you still need life insurance you could purchase another policy. You could also use the premiums that are returned to pay down your mortgage or even add to your retirement savings.

Life insurance can provide peace of mind that your loved ones’ financial burdens may be eased if you are no longer there. The benefit provided by life insurance can help keep dreams alive.

One objection to buying term life insurance has been addressed by a policy that may return the premiums you paid.

Ask an insurance professional about a product that provides needed life insurance coverage but has the potential to return your premiums at the end of the term.

Stuart Heflin is a local State Farm agent.