What kinds of life insurance are available?

Tip: Understand the different kinds of life insurance

Life insurance is an important purchase, and it is important to understand the different types of coverage that are available. The two main types of life insurance are known in the industry as term life and whole life, and each has its own unique benefits and drawbacks.

Term life, for instance, tends to be much less expensive than whole life. Term life provides only a death benefit payable upon the death of the policyholder, and the premiums tend to be quite reasonable, especially for younger people.

Whole life insurance provides an element of investment, along with a cash value that can be accessed even while the policyholder is alive. The downside is that the premiums tend to be quite a bit higher than those on a similar term life policy.

See also: Compare life insurance quotes | Life insurance FAQs

Posted in Insurance, Personal Finance

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