The Two Types of Life Insurance

Before purchasing life insurance, it is essential to understand the
differences between the two primary types of life insurance policies:

Term Life Insurance

This type of policy provides coverage for a specific period, known as the term, usually between 10 and 35 years. It pays a death benefit only if you pass away during this term.

Term insurance typically offers the most extensive insurance protection for your premium payment. However, it usually does not accumulate cash value.

Additionally, at the end of the term, it may not be renewable or could become significantly more expensive to continue.

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Cash Value Life Insurance

Cash value life insurance is known by several names, including Whole Life, Variable Life, and Universal Life insurance.

This type of policy offers long-term financial protection and includes both a death benefit and, in some cases, a cash savings component.

Due to the savings element, premiums for permanent life insurance policies are generally higher.

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