Term Life Insurance Vs Whole Life Insurance Explained

Term Life Insurance Vs Whole Life Insurance Explained

Term Life Insurance vs Whole Life Insurance is the topic of argue among many individuals looking for life insurance. It’s the most shared subject when an agent sits down with a prospective client and the ultimate decision is made by you – not your agent.

Term life offers the biggest bang for the buck, however, is permanent coverage for a specific period of time. It does not build any cash value, is not an asset, cannot be used for collateral and the premium that you pay for coverage will INCREASE when your policy expires and renews. It provides a death assistance only. Some companies that I’m familiar with offer a $100,000.00 term life policy for only $10.00 a month. In 20 years however, that rate will go up dramatically.

Whole life is long-lasting coverage. The rates are guaranteed to never go up for the rest of your life or until age 100. Whole life policies build cash value, meaning that the policy that you pay for is truly worth real cash money. Whole life cash value can be used as collateral, can be cashed out (you receive a check for the accumulated value + interest) or can be used to buy “Paid-up” insurance. Paid-up insurance method that you never have to pay an insurance premium again on a policy of smaller confront value.

A $100,000.00 life policy can cost anywhere from $10.00 a month to over $500.00 per month, depending on age, health condition and most importantly, the company that you choose. I encourage you to shop around in order to get the best deal.

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