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Term Life Insurance vs. Whole Life Insurance Summary

By Compuquotes Team on March 26th, 2008

Everyone has heard on commercials or seen or advertisements offering term life and whole life insurance. You are probably confused as to what each type of life insurance means and what the different benefits are.

The more popular of the main two types of life insurance is term life insurance and is considered to be the more practical type. There are a few downsides to start off with, term life insurance will expire without maturity and then its premiums are increased upon renewal. You age has a major factor in the rate increase with a term life policy.

Term life insurance is the perfect option for someone who has temporary or short term insurance needs, or for those who are new to their job and done have the money to spend on life insurance. Whole life insurance is almost always more expensive because it comes with more benefits.

Whole life insurance is the better more beneficial option because it insures you for your entire life. With a whole life insurance policy you generally have a fixed premium and the cash value you accumulate can be cashed in or used in another form such as a cash advance. There are some whole life insurance companies that offer a paid up insurance option which basically means that you are able to terminate the policy when ever you want, but you will still be protected at an adjusted coverage level.

If you have the extra money to invest in your family's future then you should go with a whole life insurance policy, which provides the best for those seeking long term protection. Keep in mind that both term life and whole life insurance policies are non-taxable.

When you are looking into life insurance policies be sure to take your health needs and financial situation into consideration while searching for the right policy that fits your specific needs for the present and future. It is common for term life insurance policies to have the ability to be converted into a whole life insurance policy at some time in the future, so go with a company and policy that will adjust according to your own personal needs in terms of your financial status if it should change.

It is completely okay if you are even more confused now than you were at the beginning of this article, there is a lot involved in the life insurance industry and you can benefit from things you never even thought about. There are sales people and agents for a reason, but that doesn't mean you should stick with a representative or company that doesn't satisfy you.

You can start your search for the perfect company and policy by getting online and doing a simple Google search for term life and whole life insurance, so you are able to get the details and find several companies that can provide you with a quick free quote. If you have any questions regarding a policy then don't be afraid to call the company and ask because they are more than willing to help you out.

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