Term Versus Cash Value Life Insurance: Which One is Right For You?

It is important to invest on live insurance because this means security for your own future or the future of your family. Insurance can be confusing, though, so it is hard to find the one that will truly suit your needs, and that of the people you value most.

You don’t get just any life insurance that an agent sells you without first knowing what you getting—at least the basics. It is indeed, daunting to choose, the right life insurance. You need to have basic understanding and you need to find an insurance agent that knows how to listen. There are basically two types: Term and Cash Value

Term Life Insurance

A term life insurance is very simple and straight forward. This policy offers purely death protection and often offered terms of 10, 20 or 30 year. Also, it usually less expensive than other types of insurance policies. It should be noted, however, that once the policy holder is already within a higher age category, the premiums can get a bit higher.

Term life can be further classified as renewable, decreasing term, mortgage term or level premium term. Some of these types may be a bit more expensive than the other or they can have decreasing benefits over a certain period of time, a good insurance agent should be able to help you decide on which of these types are right for you.

Cash Value Life Insurance

Cash value life insurance policies, on the other hand, is more costly but they offer better and more comprehensive coverage than other kinds of insurance policies. This is true if the policy holder pays premiums on time consistently.

Usually, cash value come with a savings plan that the insurance policy holder can benefit from upon retirement. No wonder those who invest on this policy see this as an asset.

Overall, this policy type is quite easier to comprehend for most people. Still, before you conclude that this life insurance is right for you, be aware that it also has different types: whole, universal and variable life insurance.

If you need more info, TCK Insurance can help you find the right insurance policy so you can finally stop worrying about the future.