| Most people generally understand that life | | | | die within this specific time period, your family |
| insurance is necessary. Your life insurance policy is | | | | would receive a lump sum of money, as specified |
| a method of protecting your family after your | | | | in the contract. The premiums on Term Life |
| death. However, many may not understand the | | | | Insurance is lower than other types of life |
| various types of life insurance that are available | | | | insurance as it does not build a cash value, |
| today. | | | | meaning you can not borrow against the policy. |
| Whole Life Insurance is an insurance protection | | | | One downside to Term Life Insurance is that |
| policy that will remain in effect, as long as you | | | | each year, when your policy can be renewed and |
| continue to make the premium payments. One of | | | | the premiums can be increased. Under this type |
| the major benefits of Whole Life Insurance is that | | | | of policy, the premiums simply increase year, |
| you will be able to build cash value on your policy | | | | making it more expensive for this coverage. |
| and it will be on a tax-deferred basis. This works | | | | However, it does provide complete protection for |
| by having a percentage of the premiums that you | | | | your family. |
| pay put into a savings that the insurance policy | | | | There are other types of life insurance, as well, |
| invests. Any interest earned is added to this | | | | such as Variable Life insurance. This will allow you |
| savings and it will build cash value. If this cash | | | | to be more involved in the investing of your |
| value gets build up enough, you may to have to | | | | premium dollars. Variable-Universal Life Insurance |
| continue to pay premiums after you reach a | | | | will offer more flexibility and the possibility of |
| certain age or you may be able to borrow against | | | | increasing the cash value depending upon how the |
| the cash value. | | | | investments perform. |
| Another major benefit to Whole Life Insurance is | | | | The most important thing for you to remember |
| that the premiums will not change. Youll never | | | | about life insurance, however, is your need to |
| have to worry about premium jumps as long as | | | | protect your family in case of your death. While |
| you pay them on time and if you borrow against | | | | most policies will do this, you will need to talk with |
| the cash value, you simply have to repay the | | | | your life insurance agent about all of your options |
| policy loan. | | | | and consider all the expenses, including your |
| The downside to Whole Life Insurance is that you | | | | childrens education, healthcare, and other costs |
| have no control over how the insurance company | | | | that may be incurred should you die. |
| invests your premium dollars. | | | | Make sure you compare costs on life insurance |
| Term Life Insurance is an insurance protection | | | | policies and guarantee that your family will be |
| that you select for a specific time period. If you | | | | covered and taken care of upon your death. |