Does Term Life Insurance Have a Cash Value? It Does Now!

You can now buy a term life insurance policy that offers cash values, paid-up insurance, and extended-term life options!

By Michael Horbal - Updated on 08/12/2023

It’s not very often that we see a new life insurance product that is interesting…in fact, it seldom happens.

Until now.

Many life insurers forgot about offering value in the race to the bottom for the lowest cost term life insurance.

Most top-term life insurance companies have quietly stripped away benefits and features to continue lowering their rates.

The benefits stripped away are rarely missed when you buy a policy, but those benefits are helpful when you need to convert your life insurance or extend your policy’s coverage amount.

Cash Value Term Life Insurance

Kansas City Life Insurance Company recently introduced Longevity Term 85, a cash-value term life insurance policy.

The Longevity Term 85 (and Longevity Term 80) are term life insurance products that offer:

Guaranteed Cash Surrender Value – Should you cancel your policy altogether, there is a cash surrender value of the policy that would get paid to you. The cash value is guaranteed and varies depending on the year you cancel.

The other option is a Paid Up whole life insurance policy or Extended Term Insurance.

Paid Up Insurance – The net cash value is used to buy a whole life insurance policy guaranteed to age 120. The amount of the whole life insurance policy depends on the cash value when you choose this option.

Extended Term Insurance – If you choose this option, your existing face amount of coverage remains the same. The cash value is then used to extend your term life insurance for a period of time.

If consumers have one complaint about term life insurance, it’s the fact that you pay premiums for many years and don’t receive any benefits (except the major one since you are living still) if you cancel or outlive your policy.

That’s where Kansas City Life Insurance Company developed a great product worth considering.

Longevity Term Life Insurance

Longevity Term 80 and Longevity Term 85 are term life insurance products available to ages 80 or 85.

Highlights include:

  • Issue Ages:
    • Longevity Term 85 – ages 18-75
    • Longevity Term 80 – ages 18-70
  • Minimum Face Amount:
    • 18-49 – $100,000
    • 50-75 – $50,000
  • Conversion Privilege is available for ages 18-60, and no conversion privilege for age 61+
  • Rate Classes Available:
    • Preferred Elite Non-Tobacco
    • Preferred Non-Tobacco
    • Standard Select Non-Tobacco
    • Preferred Tobacco
    • Standard Tobacco
  • Several life insurance riders are available:
    • Accidental Death Benefit
    • Children’s Term Insurance
    • Income Assured Option
    • Spouse’s Term Insurance
    • Terminal Illness Rider
    • Waiver of Premium

Cash Value of Term Life Insurance

If you’re wondering what the cash value looks like for this type of policy, we were too.

Here’s the example we illustrated for ourselves:

  • Male – Age 45
  • Preferred Non-Tobacco (second best rate class)
  • Florida case
  • Face Amount – $250,000
  • Longevity Term 85
  • Income Assured Option

First, you will notice that this term life policy is guaranteed for a 40-year term period. The only other companies that offer a 40-year term are Banner Life and Protective Life.

Income Assured Option – With this option, the death benefit in this example pays a lump sum of $150,000 at death, followed by $964 monthly for ten years.

The term life insurance cash value starts building in year three of this illustration with a total of $462.50. In year four, the guaranteed cash value increases to $2450.

The guaranteed cash value of this term life insurance policy builds to a maximum of $55,137.50 in year 30!

Final Words

If you like the idea of having term life insurance with cash value, request a quote today.

There is never any pressure or obligation with our life insurance service.

We’ll give you the information you need to decide about your coverage. Just make sure you get coverage so your family doesn’t end up with a Go Fund Me life insurance campaign.

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