Get Affordable Life Insurance!

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Get Affordable

Life Insurance!

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Term Life Insurance vs. Permanent Life Insurance

Comparing insurance types is challenging, especially with the many conflicting advertisements competing for your attention in the media. You know that you can buy cheap term life insurance, but is it any good? Or should you buy permanent life insurance? It is more expensive, but what do you get for your money? How do the two stack up against each other?

Evaluating one versus the other is a matter of understanding them each enough to make an informed decision. You need to be able to identify the key features of both term life insurance and permanent life insurance. In this way, you will know you are making the choice that works best for your needs, your finances, and your family situation.

Term life insurance provides basic coverage against death for a fixed period of time. You can buy term life insurance for periods ranging from one year to thirty years. At the end of the policy period, your coverage ends.

Permanent life insurance provides coverage in case of death, and some policies also pay out in the event of your serious illness or a disability. Once purchased, permanent life insurance can't be cancelled by the insurer for any reason other than non-payment. You have the policy for life, with coverage ending only at payout or your death.

Term life insurance is less expensive, in part because it offers much more limited coverage. However, it can be very useful for providing financial security. Many people purchase term life insurance as a hedged bet to cover a mortgage or business loan so that their families are not in financial trouble should something happen to them.

Permanent life insurance is more expensive in general because it is with you for life, and also because it has more features. You can use it for both death and illness coverage. In many cases, you can also borrow against the value of the life insurance policy, providing another financial resource for you.

Choosing the right insurance policy for your personal situation takes a bit of research and careful consideration of what you really need. By understanding what you are getting with term life insurance vs permanent life insurance, you will be more likely to buy the right policy the first time. This will help you avoid misallocated dollars and also keep you from being swayed into an impulsive purchase by media advertisements.