Some consumers are confused as to whether it is better to purchase whole life or term life insurance. Our best advice is to consider all of your options. Different options may be more beneficial at different points in time. But here is some basic advice on both to help you become a better planner.
Whole life insurance grants a certain percentage of funds back at the end of a maturation period as designated by your insurance provider. Term life insurance coverage is a little different. Similar to whole life, term life insurance cost is paid to the insurance provider, yet the provider agrees to pay a percentage of money if the client should pass during periods of coverage. In short, term life insurance grants you coverage for a particular period of time.
A term life insurance policy differs from a whole life policy in that you do not get any money back at the end of your insured period. This fact does deter some people from considering a term life insurance plan. But many people still invest in term plans each year.
Cost is one of the main attractions in choosing a term life policy. Many consumers find that they can find a low cost term life insurance plan paying only a fraction of the premium price as compared to whole life plans. Many people shop for a cheap term life insurance rate, so their families will still be covered, yet they do not have to pay exorbitant prices towards the premium. In addition, many savvy financiers choose term life rates and invest the difference they saved towards investing in whole life insurance.
Luckily for consumers, there are ways you can compare term life insurance rates to get the best policy.