Term Life Insurance VS. Whole Life Insurance
Life Insurance
Term Life Insurance
Whole Life Insurance
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The Benefits of Life Insurance
Life Insurance
Term Life Insurance
Whole Life Insurance
Many People never think about taking out life insurance;
as most people don’t like to think that they might suffer an untimely death. But the reality is that life us unpredictable, and if you do die prematurely, how will your family cope financially?
Life insurance offers your family financial protection, so that they don’t have to deal with financial troubles on top of the grief of losing you. If you have dependents, or a large debt, such as a mortgage, you should seriously consider taking out life insurance so that you ensure that your loved ones won’t be faced with financial difficulties.
The benefits of life insurance are numerous – it can be used to pay any death taxes, be put towards legal and funeral costs, pay off any existing debts or be set up
Select the kind of insurance that is most appropriate for your personal and financial
circumstances
Life Insurance is valuable to have for the protection of your financial assets now and to ensure that the costs of your final expenses are taken care of. Life insurance is also worth considering for the unexpected turns that life often takes. Treating many of the diseases that strike older adults is becoming increasingly more expensive and has put a real strain on the retirement funds of many people. You can offset the unexpected and very expensive costs of prolonged medical treatments including extended care nursing, with partial or total withdrawals from your life insurance.
But how do you choose what kind of life insurance is the best fit for your personal circumstances? Should you invest in more than one kind of life insurance? There are many factors that you must consider that will help you in answering these questions. Does your employer offer a life insurance plan? How old are you? Are you nearing or in retirement? What is the state of
Term life and whole life insurance are the two kinds of life insurances that many of us hear about the most. But what do their names mean and what are the differences between the two? Is one kind of life insurance better overall than the other? The following information is intended to help you better understand term life insurance VS whole life insurance.your present health? What is your family history for major diseases? How much money could you afford to spend monthly, annually, or in one large payment for life insurance? Is your retirement fund big enough to cover retirement living, the expenses of an unexpected and lengthy illness, and also cover the costs of memorial and burial services when you die without having life insurance? These are questions to consider and to consult with a professional insurance agent about as well.Term life insurance is so named because it signifies a kind of life insurance that stays in effect for a specified amount of time. Typically this means time terms of 10, 15, 20, or 30 years. Term life insurance often costs much less than whole life insurance because of these shorter amounts of time that a policy is in effect. That makes it appealing for those that cannot afford whole life insurance, for younger people not ready for whole life insurance yet, or for those not needing longer term life insurance. Your home and other financial assets are fully protected throughout the time term of your policy. This also offers financial security for your loved ones in the event you unexpectedly suffer dismemberment or are killed.
Whole life insurance is so named because this traditional kind of life insurance remains in effect for the life of the policy owner. Whole life premiums cost more than those paid for term life insurance, but whole life insurance carries a guaranteed death benefit and cash value amount. The cash value of whole life insurance grows much more than term life insurance due to the longer term and higher amounts paid in premiums with this kind of life insurance. Dividends are earned and can be used for unexpected costs such as treating a major disease. Whole life insurance offers the same financial protection for your family in the event you experience an accidental or expected death.
Owning both kinds of life insurance is not a bad idea if you can afford to. That way you can tap into whichever life insurance is most liquid and with the fewest penalties for funds Term life insurance is so named because it signifies a kind of life insurance that stays in effect for a specified amount of time. Typically this means time terms of 10, 15, 20, or 30 years. Term life insurance often costs much less than whole life insurance because of these shorter amounts of time that a policy is in effect. That makes it appealing for those that cannot afford whole life insurance, for younger people not ready for whole life insurance yet, or for those not needing longer term life insurance. Your home and other financial assets are fully protected throughout the time term of your policy. This also offers financial security for your loved ones in the event you unexpectedly suffer dismemberment or are killed.
Whole life insurance is so named because this traditional kind of life insurance remains in effect for the life of the policy owner. Whole life premiums cost more than those paid for term life insurance, but whole life insurance carries a guaranteed death benefit and cash value amount. The cash value of whole life insurance grows much more than term life insurance due to the longer term and higher amounts paid in premiums with this kind of life insurance. Dividends are earned and can be used for unexpected costs such as treating a major disease. Whole life insurance offers the same financial protection for your family in the event you experience an accidental or expected death.
Owning both kinds of life insurance is not a bad idea if you can afford to. That way you can tap into whichever life insurance is most liquid and with the fewest penalties for funds for use in times of emergency.
for use in times of emergency.
in a trust fund style to pay for your children’s continuing education costs.
Some life insurance policies also offer a guaranteed value, meaning that if you choose to cancel the policy for whatever reason, the guaranteed value will be returned to you. This guaranteed value is also sometimes paid to your beneficiary on top of the policy value, depending on the type of policy you originally took out.
Taking out life insurance while you’re young also has its benefits. The premiums will be lower, and assuming you continue to make your regular payments, you’re covered for life, even if you develop a condition or illness that might have excluded you from taking out coverage later in life. It’s much easier to get life insurance coverage when you’re younger, and for a lower premium, as you’re far less likely to be suffering from anything that may either increase or exclude you from taking out a policy.
Of course, it’s important to have the right cover for your situation. It is wise to talk to a financial advisor or planner before taking out any life insurance coverage to ensure that you and your family will be adequately covered in the event of your death.
Both Permanent Life Insurance and Term Life Insurance policies are offered by most insurance companies. Permanent life insurance generally requires lower premium payments, and your beneficiary is guaranteed payment if you should die. Term life insurance only covers a specific period of time, usually 5, 10, 20 or 30 years. If the policy lapses without renewal, your beneficiary will not receive any benefit if you die during the lapsed period.
It is important that you take the time to understand exactly what your insurance needs are before taking out a policy. Often, a combination of both permanent and term life insurance is needed to ensure adequate coverage for your family.
Life insurance provides peace of mind, for both you and your family. While nobody ever wants to think about dying early, it is an important thing to consider when you have financial responsibilities and/or dependents who rely on your income. If you are insured correctly, your family can focus on dealing with your death, rather than worrying about where they are going to find the money to pay for their day to day living on top of your funeral and other emergency expenses.
