An Essay on Term Versus Whole Life

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Term Vs Whole Life

If you’re like most people, there’s nothing more important to you than your family. As difficult as it is for you to imagine not being there for them, it’s a risk we all face. To help be sure your loved ones have the financial protection they’ll need, it’s important to not only think about the unexpected, but to plan for it. If you were gone, who would provide for your loved ones? Who would help… Provide cash for family income? Cover the cost of raising your children? Pay off your mortgage? Pay off your debts?

Life insurance can help give your family the protection they need while providing you with peace of mind.

It can help provide continuing income and help pay the bills–keeping your family’s hopes and dreams alive even after your death. or to find out if you’re approved for up to $150,000 of immediate 10-year term life insurance that could save you up to 30%.

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* Coverage starts today with no medical exam if you’re approved.

** Or, get more information on other life insurance coverage offered through U.S. Bancorp Insurance Services: in higher coverage amounts for maximum coverage at the lowest premiums that can be designed for long-term protection while providing flexibility in terms of premium payments and cash value accumulation. Applying for 10- and 20-year underwritten term and universal life insurance involves an interview and a medical exam (including blood and urine samples).

Term Insurance

 Advantages

Initially, premiums are lower than those for various forms of whole life insurance, thus allowing you to purchase higher amounts of insurance coverage.

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It is good for covering specific needs that will disappear in time, such as mortgages and other loans.

Disadvantages

Premiums will increase as you grow older and at the end of the term of the policy you purchase, such as 10 year term. In the 11th year the premiums will increase. Eventually, coverage may lapse due to the expense of the policy the older you do get. Generally, the policy does not have cash value.

Permanent Insurance

 Advantages

As long as the necessary premiums are paid, the life insurance policy is guaranteed to be there for your entire life. Your premium can be fixed or flexible to meet your own personal needs. The policy accumulates a cash value that you can borrow against. Loans would need to be paid back with interest or your beneficiaries will receive a reduced value of benefit if you pass away prematurely. If you ever needed to have your premiums paid for with you existing cash value, you can. If you surrender your policy, the cash value will be returned to you.

Disadvantages

The required premiums may make it to expensive to purchase the necessary amount of insurance you and your family needs. It may cost more than term insurance if you do not keep the policy long term. I think I would take the whole life insurance because it will adjust to your personal need as the term wont it is just a fixed rate but the whole life also has a fixed rate but it will fluxuate to fit your personal needs at the time that your in that would be why pick whole life over term life.

 

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An Essay on Term Versus Whole Life. (2021, Sep 27). Retrieved from https://studymoose.com/an-essay-on-term-versus-whole-life-essay

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