| Home | About Us | Contact | Privacy Policy | Sitemap | Articles | Save This Site |
|
Many people choose to combine both term life insurance and whole life insurance. However, it’s important to understand the difference between these two types of coverage so you can decide if this is the right choice for you.
Whole life insurance Whole life insurance provides you with lifetime coverage until you cancel your policy or die. Therefore, your payments will be lower if you purchase a whole life insurance policy when you are young. Many whole life insurance policy holders are individuals in their twenties or thirties who have the wisdom of obtaining coverage early in life. Term life insurance Just as the name implies, term life insurance only provides coverage for a specific period of time or term. The terms can vary anywhere from one to thirty years. Term life insurance policies make it easier to purchase a higher amount of coverage because of the cheaper cost. However, they are only valid for a limited time period. Once the term of your policy expires, you will need to purchase a new policy to continue coverage—normally at a higher rate. Advantages of Term & Whole life insurance There are advantages of term life insurance and whole life insurance. The former is often used to protect you and your family during specific periods of your life when you may require additional coverage. These may include the birth of a child or any recent large expenses such as car loan or mortgage. On the other hand, whole life insurance will protect you for your entire lifetime. Rates are lower and coverage is easier to obtain when you are still young and healthy, so don’t delay in purchasing this type of insurance. Elderly individuals may be denied whole life insurance coverage, and you risk dying after your term life insurance expires which will leave you without any coverage. You can lock in low whole life insurance rates when you are still young, and enjoy the peace of mind of permanent coverage. If you find yourself requiring additional coverage for a limited period, you can supplement a whole life insurance policy with limited term life coverage. Why You Should Purchase Term & Whole life insurance Most people want to keep their insurance policy costs as low as possible. That’s why they often purchase a whole life insurance policy to protect their family from immediate expenses after your death such as funeral costs or legal expenses. However, term life insurance is better suited to provide you with a higher amount of coverage for a limited time period. Perhaps, you want to be covered for the period of your home mortgage or while your children are still living at home so you know your family can survive financially after you die. When you have paid off your loans or your children have moved out, your insurance needs will change. Therefore, you can cancel your term life policy or let it expire to save you money. One of the wisest decisions is to purchase a whole life insurance coverage that will offer you protection for the rest of your life. Then purchase term life insurance to protect you during certain periods in your life when you may require additional coverage. This will ensure that your loved ones will be financially protected if you happen to die unexpectedly. |
|
|
