If you are in the market for a life insurance policy, then a Term Life Insurance quote is by far your best bet. The reason I say this is because Term Life Insurance is much less expensive than Whole Life Insurance and also provides coverage that is much more flexible than Whole Life is. Term Life is a temporary Life Insurance coverage plan, whereas, Whole Life Insurance is designed to be a permanent solution. Let me explain them both briefly.
Whole Life Insurance premiums are higher than Term Life, however, a portion of what you pay each month will go into a savings account for you. This is how a Whole Life policy gains what is called "Cash Value". There would eventually be enough in your savings account where you could borrow against the policy if you needed to. The only drawback is that whatever you borrow must be paid back.
Most standard Whole Life policies are designed to be paid on for your entire life or until you reach the age of 100 years, whichever comes first. At this point your policy will be cashed out for full face value. The "Face Value" is not the same as the "Cash Value". The Cash Value is the amount accrued in your savings account, where the Face Value is the amount of the policy. Example, if the policy was a $100,000 policy, then $100,000 would be the Face Value.
Term Life Insurance covers you for a specific period of time or "Term". This could be a 10 Year Term, 20 Year Term, Guaranteed Term, and so on. There are distinct advantages with Term Life, besides the fact that it's much cheaper. For one thing, there's no Cash Value because you're not paying into a fund. The good news is that you can easily find a fund that will pay you more than most Insurance companies will with a Whole Life plan. Also, you won't always need Life Insurance.
Once your kids are through college and your home is paid for it no longer makes sense to have a policy for a million bucks. All you need at this point in life is a good Term Life policy that will take care of your spouse, your debts and your burial. Any other money should be going towards your retirement funds. Do yourself a favor and get a Term Life Insurance Quote right away!
Joe Stewart Is A Webmaster And Former Life And Health Insurance Agent. He's Made Understanding Life Insurance Easy For Others. You Can Get Free Life Insurance Quotes At His Website http://hotgirlsbusiness.blogspot.com or by clicking on Term Life Insurance Quotes |
1 comments:
Life Insurance Deals:
Life insurance ensures their members with a huge protection and favor in case of any accident, illness, or death loss. It offers you flexible terms and conditions and handsome return of your money. It also facilitates you if want to support your family with a regular income, it provides regular payment that would be free of tax on annual basis.
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