What is Term Life Insurance?
Term Life insurance runs for a specified period of time. This period of time is the term or length of the policy. Hence the name Tern Life. At the end of the period of time the life insurance lapses and there is no further life cover in force. You can opt to renew the policy (at whatever rate applies at the time) or simply forget about it. As the life or lives insured are only covered for a set prior of time, the insurance companies risk is lower. This is what makes term life insurance affordable when compared to whole life insurance.
What is Whole Life Insurance?
Whole life Insurance, also known as permanent life insurance, provides Life Insurance for your whole life. Therefore there is no term component as there is with the Term Life Insurance policy. This means the policy doesn’t expire and there are no concerns over the cost of renewal. Depending on the flavour of the policy, there can be cash values building up within the policy that can be accessed.
Why choose Term Life?
The choice between the different core types of Life Insurance mainly comes down to affordability and the amount of spare money in the household. Young families starting out, do not necessarily have the available funds to purchase expensive life insurance products. The most important concern is to ensure that their families are protected. People taking on large debts such as mortgages and loans have to ensure the repayments are met. Therefore they want to keep the life insurance premiums to the lowest possible cost.
How much does it cost?
The cost of term life insurance can be found by using comparison sites to compare the cost of life cover. Enter your zip code to find Insurance companies active in your location and compare the costs and benefits. Ensure that you obtain at least three quotes to make valid comparisons.
Affordable Life Insurance
The most important thing that any responsible adult can do, is to provide life insurance for their family and loved ones. It makes sense to ensure that what ever policy to choose, it is affordable. By taking out a policy that you cannot afford, the policy will cease and with it the life insurance.