Term of Whole Life?
Many people ponder the question, should I buy term or whole life insurance? If you decide you do need more life insurance, depending on your age and what you can afford, term and whole life insurance are very different.
Term Insurance - Term insurance provides a death benefit, or money, if the person covered dies within the term of the insurance. For example, if you have a ten year term policy and you die in the ninth year of that policy, your estate would receive the entire death benefit. Insurance statistics show that only two percent of term policies are paid out. If you live beyond the term of the policy, you'll have to invest in a new term policy. If you're healthy, your premium won't be raised too high; however, if you're not healthy or are over the age of sixty-five, the monthly premium costs might be something you can't afford.
Whole Life - Whole life insurance provides lifetime coverage. While the premiums may be more expensive in the early years of the policy, the premiums level or max out at a chosen age. For example a $200,000 whole life policy might have premiums for ten years and then you own the policy and no more premiums are required. Whole life gives the policy holder a cash value as premiums are paid and Loans may be taken out against the cash value of the policy. For long-term life insurance solutions, this is your best bet.