The best way to learn everything about life insurance, life insurance policy and comparison of term vs whole life insurance policy.
Life Insurance is typically used as a replacement of income that can support the dependants of an insured individual after that person has passed away. In addition to this primary purpose, life insurance can also be used as a powerful savings vehicle as it enjoys significant tax advantages over other traditional forms of savings tools.
Life insurance is an asset that, like other investments, you pay into over a period of time, with a much larger payout expected down the road. Life insurance is different, however, because the payout is guaranteed – regardless of when the insured’s actual death takes place. There’s no other investment that can promise to be worth exactly what you expect, regardless of how long you’ve held it or when you cash it in.
There are two basic types of life insurance: Temporary – Term life insurance and Permanent – Whole life insurance or Cash Value life insurance. Term Insurance, if you were to compare it to other forms of temporary arrangements in life, is similar to renting an apartment for a certain period of time. Once that period or "term" expires; you either find a new place to live or pay a higher rental rate. Term life insurance is the same concept, when you reach the end of the term, your insurance protection ends and there is no cash value.
Life insurance policy is generally used to replace the income provided by the insured at the time of the insured’s death. But life insurance can provide money that can be used in other personal ways as well, including:
- Providing funds to pay for your funeral
- Paying off any outstanding medical bills and eliminating any other debts that you may have
- Retiring your mortgage so your loved ones own your home free and clear
- Covering your estate taxes
- Savings for college education or for retirement income
Life insurance policy has many business uses as well, including:
- Purchasing a surviving partners interest in the business
- Replacing lost business income caused by the death of a key employee
There are two basic types of life insurance: Temporary – Term Life Insurance and Permanent – Whole Life Insurance or Cash Value life insurance. Term insurance policy, if you were to compare it to other forms of temporary arrangements in life, is similar to renting an apartment for a certain period of time. Once that period or "term" expires; you either find a new place to live or pay a higher rental rate. Term life insurance is the same concept, when you reach the end of the term, your insurance protection ends and there is no cash value.
Permanent or Whole life insurance is similar to owning your own home. Whole life insurance policy premiums are larger than Term life insurance policy premiums, just as mortgage payments are higher than rent, but you end up with an equitable asset that has a cash value. Whole life insurance covers you for the rest of your life, builds cash value (like equity in your home), enjoys an income and estate tax advantages and can be used for college savings, retirement savings or any other purpose you choose. So, the question arises: what is the right kind of life insurance – Term vs Whole? Often our clients like to compare Term vs Whole Life. It is said that “the best life insurance is one that will pay the claim to your family whenever you die”. It depends on your very unique situation but in most cases the combination of term and whole life insurance works best. Please call one of our life insurance specialists at (866) 972-3262 to determine the right kind of life insurance for you and for your family’s financial security or complete life insurance quote request form to compare whole life quote and term life quote now.
