The chances of a pay out on a term life insurance policy may be lower than you might expect.
In fact, studies has shown that fewer than 2 in 100 policies for term life insurance actually pay out a death benefit.
How is that possible?
Well, there are several reasons for low payouts on term life policies.
1. Many people who buy term life insurance outlive the term of their policy.
2. Many people who buy term life insurance choose to discontinue or stop paying the premiums after a few years of coverage.
3. Some policies never have a claim made for death benefits due to beneficiaries not knowing the life insurance policy exists.
Learn more about term life insurance and probability of death