Whole Versus Term Life Insurance Policies
If you are looking for insurance for life coverage protection, then you have probably run into the terms whole insurance and term insurance. If you are new to the insurance game, or have not heard these terms before, it can be very easy to get confused over what you need, and what you can afford. A lot of people that are looking for insurance think they need everything, or worse, they think they don’t need it at all. The fact is that this type of insurance protects everything you have worked your entire life for, and not having it can cost your family hundreds of thousands of dollars. When you are looking for insurance protection, find out the difference between term life and whole life before you make a final decision. Here we will discuss the primary differences between whole and term insurance to help you make the best decision for protection for your family.
Buying insurance for live coverage protection can be completely overwhelming because the cost of your insurance premiums will vary across the diverse ranges of coverage. You need insurance to protect your family in the event of unexpected tragedy or loss, but do you need to buy the fanciest policy? No, you can choose to purchase either whole or term insurance, and the difference in policies will save you hundreds of dollars. Not everyone needs whole insurance, and you may find that your term insurance will adequately cover you in the event of unexpected crisis. Which one is best for you?
When it comes to whole insurance, this type of policy will run the extent of your life so long as you pay your premiums on time, and the lifetime payout maximum does not get exceeded. You may be required to undergo a medical exam for this insurance coverage, but not every company will ask this. This kind of insurance policy will pay out dividends every so often until the insured individual dies. This policy is a preferred choice for those people who are married and make a much higher income than their spouse. With whole insurance, your family will be supported as long as the insurance policy is kept active, which makes this a much more expensive type of insurance for some Americans.
Term insurance is a type of insurance that will cover the insured individual for a specific period of time. This time will be determined by your insurance company and can be ten, twenty, or even thirty years long. Because this type of insurance policy does not hold an actual cash value, the insured makes up for this drawback by having much lower premiums on their policy. When your “term”, the time set by your insurance company, expires, you will be offered to renegotiate your policy to continue your coverage.
If cost is your biggest concern when it comes to getting cheap life insurance quotes, you will find that your quotes will always be lower when it comes to term insurance. Your age and health will also be predominating factors in determining your life insurance quotes, but the type of policy you choose will have the biggest effect on your premiums. Whole insurance policies do carry cash values that you can borrow against in the future, but term insurance will always cover the same things, but with lower premiums. When you are buying life insurance, knowing what you will need down the road, and what you can afford now, will be your biggest factors in determining the best policy and protection for you and your family.