| Insurance Agents: is there such thing as free life insurance?

Insurance Agents: is there such thing as free life insurance?

wedding planner asked:


This is the second year that my father in law gets free life insurance for up to $1,000,000.00 Dlls from a company called
“National Western Life Insurance Company”
A Stock Company
It seems real, but we still don’t understand why is free.
www.nationalwesternlife.com

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Comments

5 Responses to “Insurance Agents: is there such thing as free life insurance?”

  1. sactoking on April 24th, 2009 6:35 pm

    Without knowing the specifics, I’d say your father-in-law has a ‘whole life’ policy. Under these policies, a portion of your premium goes into a separate cash or investment account. If you have enough cash value in your policy, you can choose not to pay your premiums in any given year. The insurer will deduct the cost of insurance directly from the cash value. It’s somewhat similar to setting up the policy to pay for itself. This is not out of the ordinary.

  2. mbrcatz17 on April 26th, 2009 9:34 pm

    SOMEBODY is paying for it. It’s not free, I promise. Free to him, maybe, if his employer is paying. Or, he’s overpaid for years and years and years, and doesn’t have to pay this year because of the equity in the policy.

  3. Tom Z on April 27th, 2009 7:45 pm

    It depends upon the type of policy your father has purchased. There are policies that are paid over a 10 year period which means that the policy premium is paid for 10 years and after that tenth payment the premium disappears but the policy remains in force. There is even an option for a single payment policy.

    That being said, it is not free because you are prepaying the premium so that there is enough built up cash value in the policy to continue the coverage without further payments..

  4. billy h on April 28th, 2009 5:35 pm

    nothing is free contact the company it is from for more info

  5. El Genioso on April 29th, 2009 10:23 am

    one thing i’m certain of is that this is NOT a whole life insurance policy. read the small print, but i’d be very surprised if out of the blue, some company decided to cover your dad. this sounds like maybe accidental death-only coverage that may be free because it’s tied to something your dad bought, or an affiliation he has. easiest thing to do is call the company or look at a statement.