|
|
| *Loan,banking and credit>>>term insurance |
What's the major difference between Term and Whole Life Insurance? |
What's the major difference between Term and Whole Life Insurance? Good question... There should be many out there who have answers. Term insurance is the least expensive type of life insurance and it is usually for a term period (interum period). In a sense car and home owners insurance is a form of term insurance; as it is renewed each year and it has no growing (cash) policy values. For most people term is the most cost effective in terms of risk/reward and asset management. It does have a downside but not a big one. Most large and diversified insurance companies offer other permanent life insurance products like whole life, universal life or variable life. The life insurance industry is phasing out of quality whole life insurance and there are only 5 or 6 good companies which offer whole life. Universal life from a large and diversified company is worth a look and is much less than whole life. If there are future health issues to consider that is if you have a career in the medical field for example and are exposed from time to time to blood born diseases; you will have a different long term need than someone who is not in that field and you may want life insurance for your entire lifetime. If so some form of permanent is the best value for you. If you ever want to convert your term policy (part or parcel) to a policy which is offered by the term company; make sure the company offers plenty of policy choices, and the term you buy is guaranteed convertable without evidence of insurability. Also make sure that the term contract has living needs benefit. This means if you become ill and have a short time to live you can access some of the death benefit before the fact and use it to settle or pay off your bills. Term is the least expensive initially and especially good just starting out in business or with a family, but it is just a piece of the whole plan that is needed to and through retirement. Good luck and aDios I think this question has been asked on this forum every day for years. Why not do a little research? http://ohio-insurance-forum.blogspot.com... Well, cost. Term is "pure insurance". It's about 10% of the price of whole life, and the rate is set one term at a time - up to 20 years. "Whole life" has a "savings" element (with a crappy return), and you pay it your "whole life", the same rate, but it's a MUCH higher rate than you'd pay with term. agent, 21+ years I believe Whole Life Insurance is like a saings. But I am not too sure. Check these sites, because you may have a better understanding from them. http://articles.directorym.com/term_life... http://articles.directorym.com/whole_lif... Term is usually referred to as temporary coverage because it is only good for the term it is puchased (ie: 10 years, 20 years, etc.). If you die during the term, your beneficiary collects. Whole life is usually referred to as permanent coverage because it will last as long as you do but you continue to pay premiums at the same rate for life. As long as you pay, the beneficiary will collect when you die regardless of how long you live. |
| Tags |
| renters insurance social insurance state insurance student insurance online insurance term insurance blue cross insurance cheap insurance aetna insurance insurance companies insurance group |
SiteMap--Copyright/IP Policy--Contact Webmaster--Resource of HR For personal non-commercial use only. |