Hey guys in this post we would be covering the topic “types of life insurance policies”. We would be looking for two main life insurance 1. term plan or 2.
whole life plan so this post is necessary because you know insurance is necessary to cover the risk and losses that happen due to any uncertainty so before you are going to purchase any life insurance you having proper knowledge about each of the plan available.
Term Life Insurance
term life insurance is for a specific period of time which is why it’s called term life insurance and then whole life insurance is for as long as you’re around so you can get a term life insurance policy for let’s say 10, 15, 20 years and the premiums for the term life insurance policies are usually more cheaper when compared to other types of life insurance. Now whenever the term is up you have the option of renewing the policy but at this point the cost or the premium is going to up a bit usually more then double what you are paying before. So if you had a life or if you had term life insurance policy for let’s say 20 years and you were paying let’s say 20 dollar a month, at the end of 20 years if you decided that you wanted to renew it, your new premium wouldn’t be 20 dollars par month anymore now usually it would be more like 80 dollars a month or even more so term life insurance is temporarily and it’s just for when you want it. Now the reason why people get term life insurance is because 1. it’s cheaper when compared to other life insurance types and also 2. they may have a specific date in mind when they know they won’t need life insurance anymore.
Whole Life insurance
Whole life insurance which is the other type of life insurance now you may hear about parmanent life insurance and parmanent life insurance is the same as whole life insurance and you may also hear about universal insurance and it’s also whole life insurance or parmanent life insurance. So whole life insurance is as the name suggest it’s parmanent now once you have this type of life insurance you pay your premiums on time when you’ll have coverage for the rest of your life. it won’t ever expire and you don’t need to renew it all you need to do is to ensure that you pay your premium and you never miss a payment and also never be late on your premium payments now if you listen to dave ramsey he tells people a lot that term life insurance is no good and whole life insurance is the only insurance you need to have and the reason for this is that whole life insurance has a cash value built in that you can surrender at any time and get cash from this life insurance policy.
now i hope this clear up between term life insurance or whole life insurance for you and if you understand what it is and what it dose drop me in comment below.