Noticed this Senior Life Insurance advertisement while watching Stagecoach west reruns. The ad guaranteed all your premiums back which sounded too good to be true.
Turns out your premiums are only paid back to you if you survive the 20 year term period. So let’s say you have been paying premiums for 10 years at $100 per month. That would total to $12000 in total premiums paid. If you choose to cancel policy after this 10 years, you would lose ALL $12000.
Moreover if your mode of payment is monthly, you would only get 98% of your premiums refunded if you were lucky enough to live 20 years after you purchased policy in your late 50s. You are the one footing the cost of them administering to monthly payment system.
To make sure you understand the skinny on this, if you purchase this term life policy for your wife when you are 60, you would have to live to age 80 in order to have 98% of premiums paid back to you.
So you see the reason these type of policies are advertised on tv channels that run old westerns!