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What's the difference between TERM and PERMANENT life insurance? Which is right for me? |
| Term Insurance is
designed to cover a person for a certain length of time such as 5,10,20,
or 30 years, or until a certain age. Once that period of time is up, the
coverage is dropped. If the policy is not used you do not get any
compensation from the coverage. Term insurance is most often taken in order to cover mortgages, loans, or to help the family take care of bills and living expenses in case of a lost income. Term insurance is generally less expensive than permenant policies such as whole, or universal life. Term policies do not build any equity(cash value). |
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Permenant life insurance is designed to stay
with the insured
for the whole of his life. Many whole life
policies have gauranteed rates that will not go up, and unlike term life,
they build a cash value that you can borrow against, cash out, or use to
(pay-up) the policy, meaning the cash value pays the premiums. Permenant life insurance generally has higher premiums than term policies, but often times when you figure in the cash value you build with the policy, a whole or universal life plan may be more economic. Permenant policies are most generally geared towards coverring final expenses such as funeral, and what ever small bills need to be taken care of. |
| Often times life
insurance is not something we generally think about. Many people have life
insurance from where they work and they believe that is all they need.
Most employers offer they're employees TERM life insurance. When the
employee retires, he most often loses his life insurance coverage. Most people plan on living past retirement, but the fact is, if you do not carry a PERMANENT life insurance, you will most likely not have any coverage after retirement, which is the time you need it most. It is extremely tough to get life insurance after age 65. Many times you can't qualify for coverage due to health problems, or it is just too expensive to take out at that age. The best way to make sure you have adequate coverage is to do a review with a life insurance agent you trust. He can help you understand the coverage you have now, and offer solutions for protecting your future. Do not let an agent push you into a policy you do not understand, and be extremely skeptical if an agent wants you to take out a new policy to be paid for by existing cash value in a policy you already have. We would be more than happy to do a life insurance review with you or your family, and to help you choose the coverage that best fits your needs. You can contact us at 800-593-2235 or you can email me at multiquote@mchsi.com |
