There Is A Big Difference - Term-Whole Life Insurance
There really is a big difference: Term & Whole Life Insurance Policies are like comparing apples and oranges.
Whole life insurance is a permanent policy that provides a death benefit that never changes regardless of how long you live.
Cash value accumulates in whole life policies, generally equaling the total of premiums paid within 10 years. You can use this cash value as just that... cash. Or, you can use it as loan collateral or simply leave it to accumulate.
The premium payments are guaranteed to never increase, regardless of age, health or any other factors. So long as you make your payments, which can be monthly, quarterly or annually, you never lose coverage. With some optional provisions in a whole life policy, your coverage continues without lapse under some circumstances.
For example, you can choose an "Automatic Policy Loan Provision", which uses the accumulated cash value to pay premiums so that the policy does not lapse. Should you die under these circumstances, the amount of cash value used to pay premium payments will be deducted from the death benefit of the policy.
Term life insurance is a different animal. It provides coverage for a specific period of time and is temporary coverage. Term policies to not accumulate any cash value.
One thing to remember when looking at term or whole life policies is not to be discouraged if you don't like the premiums that you're quoted from the first couple companies that you inquire with. It's very possible to find the coverage that you want at a price that you can afford.
http://LifeInsurance4All.com is a free tool that you can use to compare policies and quotes without having to apply for insurance.
Thank you for reading,
Christy Love
Christy Love is a retired life insurance agent with over 30 years of experience in helping people protect what matters most... their families. As an Ezinearticles.com expert author, Christy enjoys sharing her knowledge of life insurance with the online community.
Article Source: http://EzineArticles.com/?expert=Christy_Love
LifeInsurance4All.com is a free tool that allows you to check life insurance quotes without having to apply. Compare policy differences side by side and make a well-informed decision by comparing life insurance quotes online.
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