United Life Group

What Is The Difference Between Term And Whole Life Insurance

There are a lot of people who don’t realize that there are great alternatives to expensive, long-term life insurance policies.  The minute they hear of the steep rates that can come from a whole life insurance policy, they immediately assume they can’t afford life insurance.  However, there are some great cheap life insurance plans out there.  You just have to know where to look.

Term life insurance is different from a traditional whole or permanent life insurance policy in several key ways.  Here are three of them:

1. Term life insurance can be more cost effective then whole life because it’s not viewed as an investment.

One of the reasons that whole life insurance can literally cost thousands of dollars a year is that people purchase them not only to cover their expenses in an untimely death but also as a long range investment opportunity.  A policy can be very affordable, many times less than $10 a month for a healthy, non smoking adult in their mid-30’s.

2. Term life insurance can be a lot easier to understand.

Term life insurance provides the consumer with simple and easy choices based on the amount of coverage they would like as well as the length of term.  Once those two decisions are made many times you just pay a low monthly payment for the life of the policy.  These policies really are easy to understand, easy to purchase and adequate in coverage.

3. Term life insurance can be good for short term coverage.

Two of the key assets that people choose a short term life insurance policy for is coverage for their mortgage or the their child’s college education.  Many parents choose a low cost life insurance policy that expires once their children graduate college.  This ensures that their school loans will be paid in full if anything should happen to the parents.  Investing in a term life insurance policy that coincides with the term of your mortgage is also a safe way to provide coverage for you family. You may also might want to compare cheap life insurance for seniors.

These are just a few differences between whole and term life insurance.  Whichever type you go with it’s important to educate yourself on the key differences between the various policies as well as the different products various companies offer.

We’d love to provide you with some fast and free quotes right here on our site.  We specialize in finding the best no exam life insurance on the web.  All you have to do is provide us with your zip code and we’ll show you several policy options from a variety of the top insurance companies in your area.  If you have any other questions, feel free to contact one of our licensed insurance agents.  They’ll be happy to answer any life insurance questions you may have.