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http://www.gccihome.com/life-insurance/
Term Life Insurance Vs. Permanent Life Insurance
Choosing a plan is difficult; it takes a lot of time and research in order to ensure that all aspects are thoroughly examined before making a final decision. There are basically two forms of to choose from: term life insurance and permanent life insurance. Below you will find valuable information regarding both forms of as well as other helpful information which will assist you in deciding which form of is best suited for you and your situation. The first thing to do is to research and understand the concept of both forms of life insurance. These two forms of insurance have been compared to buying or leasing a car. Term is much like leasing a car, you can purchase insurance for a specific number of years, but once those years are up, so is your insurance coverage. Permanent is similar to buying a car. When you buy a car, it's yours and you can drive it forever if you like. Permanent stays with you until you die. Depending on your situation, each form of insurance can be very beneficial and offer many great opportunities. Below you will find a more in-depth explanation of each form of insurance providing advantages and disadvantages of both.Term Benefits •Term is inexpensive and can cost a considerable amount less than permanent life insurance. •There are no strings attached with this form of insurance and you are free to stop paying whenever you want.•You can begin using term insurance and if you feel
like you want more coverage, you can then convert to permanent if you wish.Downfalls•Term only provides coverage. There are no other rewards and there is no cash value.•Yes you are free to stop paying whenever you please, but should you choose to do so you will no longer have any coverage.•Term prices increase at a rapid pace as you get older and as you get older, your need for this type of insurance will become more and more crucial.Permanent Life InsuranceBenefits•Permanent can accumulate into cash value and savings. Any cash value which you receive will be tax deferred.•There is no risk involved in this form of insurance. Your loved ones will receive a death benefit regardless of when you pass away, whereas term will only pay out if you happen to be covered when you die.•You can borrow the cash value you receive to pay for college, a vehicle, etc.
You can do this without receiving a penalty for doing so.Downfalls•The most
noticeable disadvantage to permanent is the cost. This form of will cost you a great deal more than term life insurance. •Should you
decide to forgo your permanent coverage, you will be required to pay a large penalty which will be
bounded by law.. |
