Which type of life insurance is right for me?
When to comes to choosing your life insurance keep in mind that you can own more than one life insurance policy. So, if you find you have a need for term and whole life, you can buy booth types of plans.
However, to start, you;ll want to ask yourself this questions - How long do I need life insurance? If you need coverage for more than 30 years, then a whole life insurance policy can help you accomplish that goal.
But, if you need life insurance for 30 years to less, a term life insurance policy can help you accomplish your goal at the most affordable price.
The two basic types of life insurance are Term Life and Whole Life.
Term life is temporary for a period of 30 years or less. It offers you the most life insurance at the lowest cost.
Whole life insurance offers guaranteed lifetime protection, but costs a lot more than whole life for the first 30 years of coverage.
With term life you can choose life insurance for a term of 10, 15, 20, 25 or 30 years. But, your premiums can remain level for the term of your policy, never increasing during that term.
Many people choose to buy a term life policy for 20 or 30 years to provide the maximum amount of life insurance protection at the lowest cost for their family, until their kids are grown and the home mortgage is paid off.
In addition, they also purchase a whole life insurance policy to provide funds for their final expenses, and to build cash value they can take a loan from if needed in the future.
Learn more about term versus whole life insurance and how they work.