Are you wondering which insurance product is better - term or whole life insurance? This is a question that many people ask themselves when they want to find something that will provide for their loved ones in case of their untimely death. These same people may or may not have funds readily available to pay large premiums now. Others may have the financial means to pay a little more and at the same time want to end up with not only a death benefit, but also something with a cash value.
The following are the key points that you must know before purchasing these two kinds of insurance products:
Term life insurance pays only a death benefit whereas whole life insurance pays a death benefit and has a cash value.
Term life is quite easy to purchase and can be purchased for 10, 20 or more years. Most companies offer you several ways to pay your premiums, ranging from increased value for each year to remaining the same for a specific number of years. However, most companies do have the option of raising your premiums if the company's expenses increase.
Underwriters for term policies determine your rates based on your current age and health conditions. It is essential to remember that most term insurance policies can be converted to whole life policies at any time.
Whole life insurance is more risky as compared to term life insurance because the rate of return on the savings segment is never guaranteed. While it also provides a specific death benefit, it does have cash value and can be borrowed against during the life of the policy.
Traditional whole life policies guarantee the annual premium, cash values and death benefits. These are the best investments for conservative individuals. Universal life policies are a flexible type of insurance because their premiums vary each year. They carry with them maximum guaranteed premiums and minimum guaranteed cash values and death benefits.
Variable, whole life policies are meant for people willing to take some risk. This type of insurance has extremely few guarantees but has the best chance of resulting in higher cash values.
As a wise consumer, it is undoubtedly to your advantage to decide on a term or whole life insurance as a way to protect your loved ones. Both insurances let you breathe a little easier knowing that your family will be looked after in the event of your death. You can look forward to having a little extra money to enjoy later, if you outlive the life of the policy.
The following are the key points that you must know before purchasing these two kinds of insurance products:
Term life insurance pays only a death benefit whereas whole life insurance pays a death benefit and has a cash value.
Term life is quite easy to purchase and can be purchased for 10, 20 or more years. Most companies offer you several ways to pay your premiums, ranging from increased value for each year to remaining the same for a specific number of years. However, most companies do have the option of raising your premiums if the company's expenses increase.
Underwriters for term policies determine your rates based on your current age and health conditions. It is essential to remember that most term insurance policies can be converted to whole life policies at any time.
Whole life insurance is more risky as compared to term life insurance because the rate of return on the savings segment is never guaranteed. While it also provides a specific death benefit, it does have cash value and can be borrowed against during the life of the policy.
Traditional whole life policies guarantee the annual premium, cash values and death benefits. These are the best investments for conservative individuals. Universal life policies are a flexible type of insurance because their premiums vary each year. They carry with them maximum guaranteed premiums and minimum guaranteed cash values and death benefits.
Variable, whole life policies are meant for people willing to take some risk. This type of insurance has extremely few guarantees but has the best chance of resulting in higher cash values.
As a wise consumer, it is undoubtedly to your advantage to decide on a term or whole life insurance as a way to protect your loved ones. Both insurances let you breathe a little easier knowing that your family will be looked after in the event of your death. You can look forward to having a little extra money to enjoy later, if you outlive the life of the policy.
I believe Term Life Insurance is a good thing to have when it comes to children. My son just graduated college and is having trouble finding a job, so I got him Term Life Insurance until he can find a job to support himself. life insurance australia
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