Choosing Your Life Insurance Policy
Life Insurance Policy Explained
There are two types of life insurance policies. Term Life Insurance and Permanent Life Insurance. There are a few variations to Permanent Life Insurance, which we will discuss in detail later. Term life insurance only covers you for a predetermined amount of time. How long this time is directly affects the cost of the policy. The shorter the policy time, the less it will cost. While Term life insurance is cheaper than Permanent life insurance, if your policy expires before your death, you do not get a refund and your beneficiary does not receive any payment when you do die. Also, when you go to renew your term life insurance policy, you may be denied because of health reasons which you didn’t have before.
Unless you are prepared to pay life insurance premiums until your death, Term life insurance is what you are looking for.
Permanent life insurance will provide you with coverage until your death so long as you continue to pay your premiums throughout your life. Also, since your policy has no expiration date, your coverage cannot be declined due to health reasons that may develop throughout your life. Most importantly, Permanent life insurance policies have a cash value to them. This means that should you ever need money, you could “cash-in” your life insurance policy, recouping some of the premiums you have put in through the years.
There are two types of life insurance policies. Term Life Insurance and Permanent Life Insurance. There are a few variations to Permanent Life Insurance, which we will discuss in detail later. Term life insurance only covers you for a predetermined amount of time. How long this time is directly affects the cost of the policy. The shorter the policy time, the less it will cost. While Term life insurance is cheaper than Permanent life insurance, if your policy expires before your death, you do not get a refund and your beneficiary does not receive any payment when you do die. Also, when you go to renew your term life insurance policy, you may be denied because of health reasons which you didn’t have before.
Unless you are prepared to pay life insurance premiums until your death, Term life insurance is what you are looking for.
Permanent life insurance will provide you with coverage until your death so long as you continue to pay your premiums throughout your life. Also, since your policy has no expiration date, your coverage cannot be declined due to health reasons that may develop throughout your life. Most importantly, Permanent life insurance policies have a cash value to them. This means that should you ever need money, you could “cash-in” your life insurance policy, recouping some of the premiums you have put in through the years.