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