The other advantage of term
life insurance is that it has lower premium rate as compared
to whole life insurance. The lower premium rate is an
attraction for the insurer as to why not invest the difference
in amount between term life insurance and whole life insurance
in something else for better yield.
only consideration you have to keep in mind is that term
expires without any maturity and the premium increases
at the time of renewal.
life insurance policy provides insurance for whole
life. It has a fixed premium and can be cashed in. It
can be terminated any time and you can still remain insured
for an adjusted amount. This type of insurance is best
suited for those who have the finances and are looking
for long term insurance needs. Accumulation of cash value
is considered as incidental benefit and not as an investment.
The true value of whole life insurance is known only at
when you can use it as an income rather than as insurance
or when you are in need of final expenses. This is the
time when you need the retirement benefits most.
concept of life
insurance must be understood before selecting any
policy. Reason out why you want insurance. Can you do
without it? Consider your age, health, present and future
needs. Most term life insurance policies can be converted
in to whole life insurance policy at a later date. A combination
of both insurances may be the best option.
Honest Johnny -
The Consumers' Advocate.
Author: V. Whitsett