Life Insurance: Protection with Purpose
Term Insurance
Term life insurance coverage can be relatively easy to comparison shop. It simply covers you in the event that you die before the end of the term for which you are covered. Term life insurance is most always less expensive than Permanent life insurance and can be guaranteed from 10 years, up to 40 years. Term life insurance typically will not build cash value, and premiums can increase at the end of the term period.
Permanent Life Insurance
Permanent life insurance policies provide a benefit for your entire life, and your beneficiaries would receive the death benefit purchased no matter how long you live. The following types of permanent life insurance policies may include a cash value feature: Whole life insurance. Universal life insurance. Indexed-Universal life insurance. Cash value is the portion of your policy that earns interest and may be available for you to withdraw or borrow against. Permanent life insurance today also has riders and features that can protect you against chronic illness.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable.