Deciding on a life insurance policy that is right for you is not easy. It is time consuming to learn about all of the various elements of a policy before choosing one. You can decide on two different types of insurance: permanent life insurance and term life insurance.
Lower on this page, there is more info on both types of life insurance along with beneficial information that can help you decide on the right life insurance for your circumstances.
Be sure to learn about permanent and term life insurance. You can think of these two types of insurance as being similar to purchasing or leasing a car. Permanent life insurance is like purchasing a car. You own and use it for a lifetime. Permanent life insurance provides coverage for life. Term life insurance can be compared to leasing a car. You buy the car for a certain amount of time. When the time is up, you return the car. Term life insurance provides coverage for a limited amount of time.
Both types of insurance have advantages based on your particular circumstances. There is more information provided lower on this page about the benefits and drawbacks of each type.
Term Life Insurance
Term life insurance is affordable and can be less expensive than permanent life insurance.
You can decide to end coverage at any time and will not find any hidden obligations.
Start with your term life insurance, and you can change to permanent life insurance if you would like extra coverage.
You can not convert a term life insurance policy to cash or gain bonuses. It provides coverage alone.
Once you end payments, you are no longer covered.
As you age, term life insurance rates rise as it becomes more critical to be covered.
Permanent Life Insurance
You can convert permanent life insurance into savings and money. Taxes due on money received can be paid later.
Permanent life insurance has no risk. If you die, your family will be compensated. Term life insurance will not give benefits unless you are covered at time of death.
There is no penalty for taking a loan out for education, a car, and others.
Permanent life insurance is considerably more expensive than term life insurance.
There are fines backed by law if you give up your permanent life insurance.