Life Insurance Explained

Life insurance is there to help protect your family financially should tragedy strike. There are many different types of policies to consider when it comes to life insurance. Continue reading to find out about the two most common types of life insurance and how they can help protect your family’s financial future.

Term Life Insurance Policies

Term life insurance policies are life insurance policies for a specific amount of time. Generally, a term life insurance policy is for 20 years. These policies are generally cheaper than other types of policies because they are for a short amount of time. Term life insurance policies are based on your health and age.

The main benefit of this type of insurance is the amount of coverage you can get for a very affordable price. The main disadvantage to term life insurance is that you will need to re-qualify for term life insurance once your policy lapses. This can result in higher premiums as you age.  So to recap, term life insurance is the most affordable life insurance policy you can purchase, but it is not guaranteed at that rate for the rest of your life.

Whole Life Insurance Policies

Whole life insurance policies are similar to term life insurance policies in that they have a maturity date; however, there are several differences. The first difference is when the policy matures, the insurance will have a cash value you can receive at the end of the policy. Many people choose this type of insurance because of the amount of cash they can receive on the maturity date.

The main compliant people have about this type of insurance policy is the coverage amounts are smaller and the payments are larger. However, it is important to remember that this policy does pay you money at the end of the term.

If you are considering purchasing life insurance, carefully consider the type of policy that is best for you. An insurance professional can best ascertain which policy will work better for you and your budget.

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