Difference Between Whole Life And Term Life Insurance Florida FL
Reader’s Question:
My husband and I are thinking of choosing between a term life insurance and a whole life insurance. What I only know is that life insurance is renewable while the other is not. Other than this, how are the two different from each other?
Pamela
Tallahassee, FL
The two basic types of insurance are term life insurance and the whole life insurance. The coverage of life insurance or term life insurance is on a specific term period of time. It may be 5, 10, 20 or 30 years. Generally, this type of insurance policy provides the most protection in a lowest price. On the other hand, whole life insurance policy covers death benefits with a component of cash value and offers a lifetime
protection. Although this type generally has higher premiums, you can use it as investment and retirement.
Under the term insurance, the policy can be renewed once the period ends or expires even though your health may have changed because you have aged (you could have purchased the policy 20 years ago). In this case, the premium may have
increased on the time of renewal. There are term policies that allows you to convert from term insurance to permanent without any evaluation. This term policy is called convertible. You can contact your insurance
agent for other information on this.
To sum up, term life insurance policy can protect your loved ones in a smaller premium payment while the whole life insurance or permanent life insurance policy provides financial protection and future savings.