Term Life Insurance Versus Universal Life Insurance - You May Be Surprised
Term Life Insurance Versus Universal Life Insurance... This is a common question among those looking for coverage and especially when looking to save money.
Let's start out with the basics...
Term life is temporary and builds no cash value. It's not a permanent solution if that's what you're looking for. It's only good for a specific period of time. You can however obtain an inexpensive term life policy that is "Coververtible" to permanent insurance without having to provide any proof of health when you convert the policy. Premiums will be based on your attained age at the time of conversion and will of course, go up.
Universal life is permanent coverage however, there are two main components to Universal life insurance... an insurance component and a separate account.
The insurance component of a Universal policy is always ART or Annual Renewable Term insurance. What this means is that your policy renews every year and your premiums increase every year.
The separate account component of Universal's is an investment account. This can be a bonds account, real estate account, money market account and so on. The excess money that is above and beyond the expense of providing the insurance coverage (determined by the insurance company) is placed into this separate account and used for investments. The profit or loss from this account is your money and can be used as you wish.
If you're looking for permanent insurance, I strongly recommend that you consider a "Whole Life" policy. The death benefit, cash value and premium payment amounts are all guaranteed so there is no risk of loss.
Recommended Site: http://lifeinsurance4all.com is a FREE life insurance quote calculator that allows you to compare top companies, policy details and quotes side by side.
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.
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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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