LIFE INSURANCE FAQ
What is the difference between Whole Life and Term Life?
| Whole Life Insurance | Term Life Insurance | |
|---|---|---|
| Coverage Period | Lifetime Coverage | Preset coverage period, typically 10, 15, 20 or 30 years |
| Premiums | Premium amount is set for the lifetime of the insured | Premium amount is guaranteed for the policy term selected |
| Cash Value | Many policies generate a cash value which can be utilized during the lifetime of the insured | Cash values are not available |
| Flexibility | Can't be amended if your coverage needs change | When your coverage needs adjust, your coverage amount or term length can too. |
What is Term Life Insurance?
Term Insurance is the most affordable type of insurance when initially purchased, is designed to meet temporary needs. It provides protection for a specific period of time (the “term”) and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.
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Most people between the ages of 18 and 80 can purchase term life insurance. It’s possible for cancer survivors, diabetics and individuals who take medications for cholesterol, blood pressure and other conditions to obtain coverage.
How does Term Life Insurance work?
You can purchase term life insurance for 10, 15, 20 or 30 years. As long as you pay your premiums on time, your policy will remain active. If something happens to you while the policy is active, your beneficiary will receive a death benefit for the amount of the policy.
Why are so many online quotes inaccurate?
Many instant online quotes are not accurate because they’re based on very little personal information. Your health history and a number of personal factors are utilized to produce more accurate quotes. This is why it is important to speak to a licensed professional. Different companies have different prices and also can specialize in favorable rates for different risks.