subject: Term Life Insurance Vs. Whole Life Insurance [print this page] Term insurance is a policy that will expire after a period of time. It may be 15, 20, or even 30 years. The value in term is that it usually offers less expensive premiums. You get the coverage you need at a lower rate. All you sacrifice is the need to renew once the policy expires. You will most likely need to renew at a much higher rate because of your age. Term is ideal if you plan on saving for the future. Ideally, you could save enough money for retirement and possibly leave some for your family. Many say that you should buy term and invest the difference. It you are good with your money and planning ahead than this can be a perfect option. If you don't see yourself saving for the future than whole life may be better option.
Just like he name whole life insurance is a policy that you pay into nearly your entire life. The benefit is that you are guaranteed a payout once you die. This can be a good option if you would like to leave money to your children or in case you die before your spouse. The premiums are usually higher than term but can offer peace of mind. Many whole life policies may allow you to barrow funds. As your policy builds you can barrow against the policy. This can come in handy for college or even vacations. Whole life is a good route if you may not be saving for the future.
Many will constantly debate the pros and cons of term insurance vs. whole life. You will just need to identify what will work best for you. Keep in mind to look over the small print. Policies may have certain restrictions. Possible restrictions could relate suicide, dying while intoxicated, and other possible clauses. Some policies will not pay out if the holder commits suicide or dies while drunk driving.. You also need to be careful to always pay your premium or the policy can lapse and you lose it. Study up on the different polices and you can find which one is best for you.
by: Art Gib
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