Posted on Wednesday, 3rd February 2010 by jkibler
Term vs whole life insurance Read this quickly learn which one of these insurances are the best and would cost you less money and give you the best protection.
If you’re thinking about taking out a life insurance policy you need to stop and consider all of your options. Basically you will be choosing between term life and whole life insurance, which is one of the issues that everyone comes across as they are making life insurance decisions.
What are the differences between the two?
What is term life insurance?
Term life insurance is a basic type of life insurance, which is set up for a specific number of years, which is known as the term. This term can be 5 years, 10 years, 15 years, or 20 years.
If you take a 20 year level term life insurance policy the payments of your premiums will remain the same for the entire length of time. If you take out a five-year term life policy your premiums are going to increase after five years.
What is whole life insurance?
This type of life insurance is designed to last for a lifetime rather than just a set term and works on more of an investment basis. This policy guarantees a payment on death and if the policy is kept up to date after a period of 15 years the owner of the policy can receive back the money that has been paid in. You can see beyond the 15 year time frame he will actually be able to cash in the policy for more than he paid for it depending upon the interest accrued during the life of the policy.
Advantages and disadvantages
Term life is cheaper
You get no money back
Whole life is much more expensive
You can get your money back
Term life is for a specified length of time
Whole life is for your entire life
Jimmy says there are advantages and disadvantages to both but it is up to you to weigh all of your options and decide which policy is best for you and your family’s needs.
Whoa Jimmy?
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