What is the difference between term and whole life insurance?
What is the difference between term and whole life insurance? When is it better to use one versus the other?
insurance best answer:
Answer by STEVEN F
With term insurance, you pay a premium and the insurance company agrees to pay the death benefit if you die during the TERM of the policy.
With whole life, you pay about 10 times the premium, they buy term insurance, and 'invest' the difference. If you die while the policy is in place, they pay the death benefit, and KEEP the cash value. If you cash out the policy, you find the return of the investment portion of the policy make CURRENT savings account returns look attractive. Yes, I just said 0.1% looks GOOD compared to a whole life policy.
insurance
Monumental Life Insurance
Image by A.Currell
Orignal From: What is the difference between term and whole life insurance? and Monumental Life Insurance
No comments:
Post a Comment