| Term Insurance |
This is the simplest and cheapest type of life insurance. It means you are insured for as long as you maintain the policy, for a stated term. Term insurance is well suited for those on a limited budget, giving them peace of mind that their families will be taken care of in case the worst happens.
It can be positioned to pay off a large loan such as a mortgage or home refinance. Term life insurance is known for the low monthly payments for young people relative to the high payout. Insurers offer term insurance policies providing level premiums of 5, 10, 20 and 30 year terms.
Claims filed on term life insurance will be satisfied as long as the premiums are up to date, the insurance contract has not expired and if no claims are filed. There are no returns of premium dollars if no claim is filed by the insured.
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| Whole Life Insurance |
Unlike Term Insurance, Whole Life Insurance continues as long as you live and continue making premium payments. Because Whole Life Insurance premium levels are permanent, it is most economical when purchased when the insured is young.
Whole Life Insurance is set up to function not only as insurance, but as a kind of cash fund to assist you with short-term financial needs. As long as your policy remains intact, you can borrow against it and loan yourself money at the current interest rate.
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If you would like a quote on life insurance click here.
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Posted Tuesday, July 20 2010 10:10 AM
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