Term Life Insurance Vs Whole Life Insurance Explained

Term Life Insurance vs Whole Life Insurance is the topic of debate among many individuals looking for life insurance. It’s the most common 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 temporary 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 benefit 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 permanent 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 actually 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 means that you never have to pay an insurance premium again on a policy of smaller face 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.

Recommended Site: http://lifeinsurance4all.com is a FREE life insurance quote calculator that allows you to compare top companies, policy details and quotes side by side.

Christy Love is a retired life insurance agent with over 30 years of experience in helping people protect what matters most… their families. As an EzineArticles.com expert author, Christy enjoys sharing her knowledge of life insurance with the online community.

Article Source: http://EzineArticles.com/?expert=Christy_Love

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