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If they buy a new 20 yr term now, why should they keep the current for an additional 5 years? Assuming they have the correct amount of insurance that they need, the new 20 year term will fill that need. Why pay for both?
Because the insurance is at a "bargain price", assuming it was a competitive product when it was purchased.
I may not need any more 9mm ammunition, but if you tell me you can sell me 100 rounds for $10, I'll ask if you have 1,000 rounds.
Did you read my earlier post/example?
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I agree. However, I'm assuming if they want to wait 5 years because their current policy is cheaper then the new one, they definitely won't want to pay for both...even with the better odds.
You're approaching this wrong.
If they know they will need insurance for the next 20 years, then they NEED the new 20 year policy, which will be at a much larger premium than they are paying now.
The only "extra" they have to pay, is the premium for the old policy, which will be a fraction of the cost of a new 5 year term policy. It's a bargain, don't let it go.
If they die in the 5 year overlap, double the benefit.
And yes, it's like having accidental death insurance, and the premium is probably lower, and the coverage is better.
Accidental death insurance is a lottery ticket many people buy.