|
The answer is, because the policy only pays if you die from an accident. I'm always stunned at the commercials
announcing these incredible low costs on some policies. Although if I were to bet on how I might leave here, my bet would
be on an accident.
Being focussed on the price will cause most to overlook the fine print on many insurance policies.
But one must understand that if they get sick and die the accident insurance will not pay. There is usually an exclusion in
an accident coverage for a sickness that develops from an accident beyond a time limit.
If there is a policy at
your job that you don't have to pay for, it is probably an accident policy so check to make sure so that if it is you
can opt for some other or additional coverage.
As with other term insurance, there is no cash value that builds
up or any of the common non-forfieture provisions of paid up or surrender provisions. The comparative cost is not like the
difference from whole life to term prices. You may be able to purchase $25000 worth for a $10 one time payment. It will usually
only cover a specified peril so take heed.
|
