How to Compare Term Insurance with Whole Life Insurance Plans
If you are shopping for life insurance and want to learn about your options for coverage, you may be wondering what term insurance and whole life insurance are, how they work, and want to learn the benefits and disadvantages of both.
Term life insurance is temporary life insurance for a set period of time. The term is the length of time your life insurance lasts. Term life usually offers coverage for 10, 15, 20 or 30 years.
Whole life insurance provides lifetime protection, as long as you pay your premiums. Whole life cost a lot more than term insurance because it builds cash value inside the policy, and lasts throughout your life.
Main Benefits of Term Life Insurance:
Main Benefits of Whole Life Insurance:
Who Buys Term Life Insurance?
Many young couples, families, and homeowners buy term life insurance to get the most protection for their money while they need the life insurance to protect their family.
Who Buys Whole Life Insurance?
Usually, whole life insurance is purchased to provide money for your final expenses, including burial, funeral, and other related costs.
In addition, some people buy whole life insurance as a form of investment, but you may want to invest your money on your own without paying a life insurance company for low returns.
Can I Buy Whole Life Insurance and Term Insurance?
Yes, many people choose to buy a large term life insurance policy for up to 30 years of coverage while they are young and the rates are low for the maximum amount of protection for their growing family. Learn more about how term life insurance works.
In addition, you can buy a separate whole life insurance policy to guarantee that money will be there to pay for your funeral and final expenses and your family will not have to suffer financial hardship of paying for these costs if you pass away.
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