subject: Term Vs. Permanent Life Insurance Baltimore [print this page] Term Vs. Permanent Life Insurance Baltimore
Many people understand the importance of life insurance. While you must plan for retirement, it is also important to have a plan in force in the event you pass away. Life insurance is designed to pay not only for your burial but also to give your beneficiaries money to live a comfortable life in the event your leave them earlier than you expect to. Death is inevitable. While this is certain, knowing when your time will be up is not. If you are comparing life insurance Baltimore plans with life agents in your area, it is important to know you options. With significant differences in term and permanent life insurance in terms of coverage and cost, you will need to make the best decision for your lifestyle and your budget.
Term Life Insurance Baltimore
Term life insurance is more easily defined as temporary life coverage. Most agents will try to explain the difference of term and permanent life insurance with the comparison of buying versus renting. With term insurance, you are essentially renting a home rather than buying one. While you will have the coverage listed on the policy, once the term is up the policy is over and you have no equity in your investment.
Term life insurance is strictly life insurance with no investment component. The premiums are much lower than permanent life insurance and are based on your age at the time of policy inception. Term policies vary in length from a very inexpensive one-year term, to longer and more expensive 30 year terms. The policy premium with a term policy will remain the same throughout the term. For example: If you were rated as a 30 year old in excellent health, you will receive this premium all the way through the age of 60 if you invest in a 30 year term. At the end of the term you will be required to prequalify and will be rated at your current age.
Permanent Life Insurance
Permanent life insurance is made up of life insurance coverage and an investment component. Whole life insurance is a permanent policy, which accrues cash values and earns interest based on the premiums you are paying. While premiums are much higher than term policies, these policies have been noticed as a great financial vehicle to invest in during turbulent economies. If your whole life contract is managed properly, you can actually take interest accrued out to live on through retirement. The premiums of a whole life policy are constant throughout the entire period of the policy.
Choosing which life insurance Baltimore policy is right for you will require research. Sit down with a reputable life insurance agent and have plans quoted. Compare the premiums and values and make a choice that is best for your future.
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