Life insurance had never waned in popularity through the decades because of its many benefits. The monetary endowments that the family of the deceased receives help family members deal with financial obstacles, especially if there are debts and mortgages to be paid, and children needing financial support through college.
The Current Options
There are many types of life insurance. Single premium life insurance requires the policyholder to pay a premium only once and the policy is fully paid already. The insurance company also receives annnual fees. Term life insurance are offered at various increments – 1 year, 5 years, 10, 15, 20, or 30 years. The beneficiary receives a lump sum in the event of the person’s death. Many experts in the field consider term life as the best of the many available options today.
The coverage of whole life insurance is a person’s lifetime, or specified to be until the age of 100 years. The cash value of the policy is given to individuals who live to be beyond 100 years. This policy allows the person to get the money he or she had paid if the person chooses to cancel the insurance policy. Whole life also has an investment benefit such that a percentage of the payment is placed in a cash-value account. When compared to other types, the premium is generally higher. There are additional options under whole life insurance wherein the policyholder can choose how and where to invest his or her money. Whole life insurance policies also allow the insured individual to borrow money for a reasonable interest.
What Is The Best Life Insurance Available Today?
Term life insurance had always been the more popular choice for those who intend to provide for their loved ones when the pass away. And many consider it the best possible choice, primarily because it is the most affordable. For a 45-year old American makle who does not smoke, claims can amount to around $1 millon only for $2,600 a year which takes 20-30 years to pay.
Is Term Insurance Really The Best?
For those who believe that whole life rather than term life is the better type of insurance, the argument against term life insurance usually rests on the fact that it has an expiration date. Another disadvantage that they are quick to point out is that when a term life insurance policy get cancelled, the policyholder gets nothing. The same is true when the insured outlives the policy. These are valid points, and it is prudent for those who are in the throes of deciding on which insurance policy to get to weigh in these cons with the main advantage of term life insurance – affordability.
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