here are basically two thing. During that time you had
kinds of life insurance: the peace of mind knowing that if
Term Life Insurance and you had died, you were taking
Whole Life Insurance. Term life care of your wife, your kids,
insurance insures your life for a someone important to you. All for
term: 5 years, 10 years, 20 a modest expense. Most policies
years, while Whole Life insures are renewable without your having
your life for, you guessed it, to reprove your insurability,
your whole life. Term life though now that you are older,
insurance is generally less the premium will have increased.
expensive because it only insures As you get into your later years,
your life for a term and only terms you are eligible for
pays out in the event of your decrease because your life
death. Whole life is more expectancy has also decreased.
expensive because the premium Many people purchase term life
charged is for your whole life insurance for a vulnerable
and it offers more benefits than period: they want to be insured
just the single death benefit until the kids get out of
paid upon your demise. college, or until the house
mortgage is paid off. If you are
Term life insurance is like looking to purchase life
renting or leasing. You insure insurance for the long haul, I
your life for a term, you pay the suggest you take a look at a
premium and if you die during whole life policy.
that term, someone receives the
money you insured your life for. Whole life insurance insures your
If you manage to survive that life for your lifetime. Premiums
term, the insurance company keeps are higher than term insurance,
all your money and the contract but your rate is locked in at the
is ended. Now that is not a bad age you start the policy. The
premium does not go up, while the take a loan from your policy! You
rate increases with every renewal can also surrender your policy
of term insurance. If you insured and use the proceeds to
your whole life with term supplement your retirement. Over
policies you would end up paying time the accumulated dividends
more in the long run because of and cash value of the policy
the increasing premiums while the could add up to a substantial
whole life policy charges a nest egg!
continuous steady rate.
When purchasing life insurance
Whole life insurance offers more you have to consider what your
benefits than the one time death goals are. Are you going to use
benefit of term insurance. The this to supplement your
insurance company is investing retirement, or do you just want
your premiums and your policy is to make sure the house is paid
building up cash value. The for if you die? How much coverage
company also pays out dividends can you comfortably afford?
and that also increases the value Discuss all these things with
of your policy. Over time you your insurance agent. Have him
could use these dividends to pay show you illustrations of what a
for a portion of or even all of whole life policy could do for
the premium of your life you and make an informed
insurance policy. You can use decision.
your whole life insurance policy
as collateral, and you can even
About the Author:
Douglas T. Zinkevicz has had over a decade of experience servicing the auto,home and life insurance needs of his clients. Let him help you with your insurance questions by visiting http://www.insuranceplus.blogspot.com.
Read more articles by:
Douglas T Zinkevicz
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