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Whole Life Vs Term Life Insurance - Which One
What's the difference between whole life vs term life insurance? So you are looking to buy some life insurance, huh? Well, if you don't know your whole life from your elbow you need to begin by doing some research. Online or with the telephone, doesn't matter, just get busy.
Insurance is not an easy thing to buy, there are so many different types of policies that trying to get through them all and understanding every little detail will absolutely drive you bonkers.
So, your best bet is, when you think you know what you want call an agent and make an appointment to sit down and talk with them about what you have come up with. They will let you know if what you have picked is right for you and your situation. Or if you just don't know where to start then go ahead and make the appointment and let them explain everything to you then make your decision.
The difference between whole life vs term life insurance is whole life can be a lot more complicated and much more expensive.
Term life insurance is usually bought with a set 'term' in mind, say, anywhere from 10 to 30 years and is usually less expensive to buy than a whole life policy because there is no cash value or investment aspect to this type of policy. There are several different types of term life insurance policies though, you just have to choose the one right for you.
You can buy an insurance policy that renews automatically every year. The downside to this policy is that the premiums go up every year as well. You could get a policy that lets the premiums stay at the same rate for the entire policy term or a policy where the benefit decreases over time.
Keep in mind that term insurance is great for those who are interested the guaranteed rates but if you come to the end of your term, you will need to apply for a new policy and your rates will change because you are now older and your health history has possibly changed.
All policies require you to undergo a physical exam during the application process and the results of the exam are used to determine what your premiums will be.
Whole life insurance is insurance coverage that not only has higher premiums and offers permanent protection but also offers a cash value account that builds up over the life of the policy every time you pay your premium. Basically it is just like having a savings account at a bank except that this cash value is not protected like your bank account is.
Other "whole life" policies include universal life and variable life. These policies offer different components that may be more flexible that either the whole life or term life and may be worth checking out. So, my advise is to contact your local insurance agent and ask to see them regarding life insurance, they will be more than happy to explain the difference between whole life vs term life insurance.
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