Term insurance seems like a ripoff since you pay and pay and don’t get anything. Why do people buy it when you get nothing for it?
Answers | 5
What I am hearing in the questions is also this; that there is something else that you expect from term life insurance beyond a death benefit. Term life insurance does not set the expectation and then fail to deliver. Your expectation is unrealistic for this type of coverage. Does your homeowners insurance do anything for you other than cover the risks associated with that coverage? Do you expect there to be cash value to borrow from with your auto insurance? Do you see value in those coverages?
People buy term insurance for the coverage. They pay less to get that coverage than they would pay with permanent coverage. It fits their temporary needs and it works for their budget. There is an obvious value that they can see that you are overlooking. Personally, I have both term and permanent coverage because I see value in both!
1. "Term" coverage is an "affordable" way to address the risk of a loss (life, limb, and or income).
2. It protects young families from the loss of bread winner, or helps an older individual address his or her final life expenses.
Christina, remember, insurance is to protect you or others important to you against a loss. There are many types of policies to achieve that objective. I recommend finding an agent you are comfortable with. And one who will to listen you, and what you need in an insurance policy.
I hope my response was helpful,
Unfortunately there's enough misleading negative "press" surrounding permanent life insurance that any quick web search will deter someone rather easily. It's sad, but true.