Term Insurance And Whole Life
When term and whole life insurance is mentioned in one sentence there usually is some sort of controversy.
Someone is stating that one is better than the other, either term life is best or whole life is better.
The fact is no type is better than the other. You buy term or whole life depending on your need. There really is no realistic ore intelligent controversy.
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Term And Whole Life Insurance Compared
- Life Insurance For limited Years
If you want life insurance for a limited number of years you want term life insurance. That is why they are referred to as term policies. They are policies for limited periods of time, 5 years, 10 years, 15 years, 20 years or 30 years.
You may start a policy at a time when you see a need for 20 years, for example.
You may want the policy for family protection or to fund a buy sell agreement in a corporation or partnership. The 20 year term policy may be sufficient.
- Life Insurance For Unlimited Periods
You go for a few years and you become aware that you need to look further ahead. At that point you may want to own a universal life policy or a whole life policy.
You can convert your term life insurance policy to whole life insurance. All you need to do is sign a form and pay the additional premium. There is a set period of time in which you can convert the policy.
The life insurance company may say that you need to convert your 20 year term policy within 12 years, for example.
Term and whole life insurance are similar in many ways. Term life insurance policies are limited to 5 years, 10 years, 15 years, 20 years, 25 years or 30 years.
Whole life insurance can be kept until age 100 if you so choose.
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