When you purchase any life insurance product what you are essentially buying is a promise - a promise that the policy benefits will be paid out at the time of a claim.
It may be that you go through the lifetime of a policy without ever having to make a claim, in which case human nature might lead you to wonder why you bought it in the first place.
Of all the types of life insurance I can think of, term life insurance might seem to fall into the "hypothetical pay" category. Partly, that reflects the fact that these policies are primarily bought to cover events with a known time horizon: raising children, paying off debt, and replacing income before retirement to name a few.
When your mortgage is paid off, there may be no need to keep your policy and you may just cancel it or let it lapse. Since there is no cash value to a term life insurance policy, it may seem (if never claimed on) to have been a futile exercise.
I can attest to the value of the promise in term life insurance policies. Over the past year I have been involved in the payout in two such contracts.
From the submission of the claim documents to the actual payout of the policy's face value, very little time took place - about a week or two. This reflects the value of having the underwriting on the policy done at the time of the application rather than at the time of a claim.
When applying for life insurance, it may be frustrating to go through the various questions and investigations that are part of the application process. However, even if it results in a higher premium, going through this process will strengthen the promise.
Getting the most value from your term life insurance coverage begins by meeting with your Scrivens advisor to assess your needs. This allows us to structure coverage with the face value and options you require, keeping in mind your budget reality.
Reviewing your coverage periodically with your advisor ensures that changing life circumstances are reflected in your policy.
If you haven't reviewed your life insurance needs recent, I encourage you to speak with your Scrivens advisor and have your unique needs protected.