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