How to decide on the type of life insurance?
How to decide on the type of life insurance?
QuickLifeInsuranceSource.com
Term life insurance is good if:
* Term life insurance is good for a short period of time. With term life insurance benefits you can ensure the education of your children if you can invest in time. If there is a debt that you have to pay off, you may invest in term life insurance. Term life insurance covers you for a term of 5 to 20 years.
* You need a large amount of life insurance at a low cost. A term insurance pays only in the event of death of the policyholder. However, if you are alive at the time the policy ends, term life insurance coverage will stop until you renew it. You will not build a savings like in a whole life insurance.
Whole life insurance is good if:
* Your life insurance needs will extend for a long period of time. A whole life insurance would pay the beneficiary the death benefit no matter when the policyholder dies.
* You need to accumulate a savings on a tax-deferred basis. A whole life insurance has its own savings program that puts aside a certain portion of the amount you pay as premiums into the savings program. While some argue that you can buy term and do your own savings plan, whole life has a built in plan that forces the issue. Check with your financial advisor if this is a major factor in your decision.
QuickLifeInsuranceSource.com
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