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My son-in-law told me that if you purchase a life insurance policy after a certain age it goes down if value till its virtually worthless.?

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  • 9 months ago
    Favourite answer

    Decreasing term does. That is only ONE type of life insurance. My life insurance through work begins to decrease in the death benefit amount once you retire, but it never becomes worthless.

    Decreasing term insurance as a form of basic life insurance is rare. You generally see it being used to insure mortgages. The payment stays the same throughout the contract - which can be terminated at any time and is, when the property is sold and the mortgage closed out - but the value of the insurance falls as the mortgage principal falls.

    Don't listen to people who aren't experts. If you have insurance needs, speak with several different independent agents, agents who can represent multiple insurance companies.

    https://www.investopedia.com/terms/d/decreasing_te...

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  • 9 months ago

    Depends on what you buy. Term is great to cover you while you might need some life insurance (kids growing up, salary replacement), but it does end.

    Whole life is great too, but really useful for estate planning purposes...

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  • 9 months ago

    Um...no.  Only a decreasing term policy would do that which is a very rare policy.  And, group insurance decreases typically twice around age 65 and 75 where it becomes a fraction of what it was.  Whole life, universal life, variable life, term life, etc...don't decrease in face value typically (there are exceptions).  Term life just gets cost prohibitive, but doesn't necessarily decrease in value or end.

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  • TedEx
    Lv 7
    9 months ago

    TERM insurance does exactly that. It is meant to insure you for a certain number of years.WHOLE lift builds a cash value provided to keep up the premiums

    • Anonymous
      Lv 7
      9 months agoReport

      One type of term insurance that nobody buys,.

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  • Anonymous
    9 months ago

    That is not true of all policies. Whatever you do, you do not want arzehat there to be the beneficiary.

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  • Judy
    Lv 7
    9 months ago

    depends on what kind you purchase.

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  • DON W
    Lv 7
    9 months ago

    There are some policies like that, but for most "whole" life insurance policies, they retain their value. For term policies, they typically hold their value until they get to the end of the term (such as 15 years).

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