When looking into purchasing life insurance, it is essential to understand the basic pros and cons of both whole life and term life insurance to make the best decision for you.
Good financial decision-making is based on solid research and sound advice.
Don’t let financial advisors do the thinking for you because they only have one word in mind commission. The commission is what drives them to give you the best advice for them. Not you.
Let’s start with some basics, shall we?
Whole life insurance provides the insured party with a lifetime permanent coverage in exchange for level, regularly paid premiums. In the case the insured party dies, a death benefit is provided for the insurance beneficiaries. The important thing to know about life insurance is that it does not have an expiry date and has the potential to be used as an investment tool.
When premiums paid into your whole life policy matches the death benefit, it is considered to have reached its maturity date. Typically, insurance companies design policies to mature when you turn 100, but some recent policies even extend the maturity date to age 120.
Term life insurance which is sometimes referred to as pure life insurance provides the policyholder with temporary coverage for a specific term that may range between 10 to 30 years. If the insured party dies within the term, the policy beneficiaries receive the death benefit. On the other hand, there will be no death benefit if the term policy expired before the insured party dies. Nevertheless, the policyholder can have the option of renewing the term policy or even converting it to a whole life policy that does not expire.
Term Life insurance comes in several flavors including convertible, increasing, mortgage, and annual renewable. Each one of these types targets a specific need for potential customers.
Convertible Term allows the term insurance policy which typically has a limited number of years to be converted to whole life insurance before it expires.
Increasing Term allows the increase of death benefit as the time goes forward.
Websites:
https://www.prudential.com/
https://www.statefarm.com/
https://www.newyorklife.com/
https://www.northwesternmutual.com/
https://www.transamerica.com/individual/
https://www.mutualofomaha.com/
https://www.usaa.com/?akredirect=true
Good financial decision-making is based on solid research and sound advice.
Don’t let financial advisors do the thinking for you because they only have one word in mind commission. The commission is what drives them to give you the best advice for them. Not you.
Let’s start with some basics, shall we?
Whole life insurance provides the insured party with a lifetime permanent coverage in exchange for level, regularly paid premiums. In the case the insured party dies, a death benefit is provided for the insurance beneficiaries. The important thing to know about life insurance is that it does not have an expiry date and has the potential to be used as an investment tool.
When premiums paid into your whole life policy matches the death benefit, it is considered to have reached its maturity date. Typically, insurance companies design policies to mature when you turn 100, but some recent policies even extend the maturity date to age 120.
Term life insurance which is sometimes referred to as pure life insurance provides the policyholder with temporary coverage for a specific term that may range between 10 to 30 years. If the insured party dies within the term, the policy beneficiaries receive the death benefit. On the other hand, there will be no death benefit if the term policy expired before the insured party dies. Nevertheless, the policyholder can have the option of renewing the term policy or even converting it to a whole life policy that does not expire.
Term Life insurance comes in several flavors including convertible, increasing, mortgage, and annual renewable. Each one of these types targets a specific need for potential customers.
Convertible Term allows the term insurance policy which typically has a limited number of years to be converted to whole life insurance before it expires.
Increasing Term allows the increase of death benefit as the time goes forward.
Websites:
https://www.prudential.com/
https://www.statefarm.com/
https://www.newyorklife.com/
https://www.northwesternmutual.com/
https://www.transamerica.com/individual/
https://www.mutualofomaha.com/
https://www.usaa.com/?akredirect=true
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