Life Insurance Term Policies Versus Whole Life Policies - PowerPoint PPT Presentation

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Life Insurance Term Policies Versus Whole Life Policies


Term insurance plans protects your family and loved one’s against any threat under one life insurance term plan. – PowerPoint PPT presentation

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Title: Life Insurance Term Policies Versus Whole Life Policies

Term Policy
Life Insurance Term Policies Versus Whole Life
Life insurance is a serious consideration to give
your family peace of mind and financial support
after you die. It is an unfortunate fact that you
may pass away suddenly or after an extended
illness, leaving your family to face your unpaid
expenses as well as your final expenses. Many
times life insurance term policies are less
expensive than whole term policy, but how do you
know which one is right for your family?
Understanding the difference between life
insurance term policies and whole life policies
will help you know which type of policy you want
to invest in.
Life Insurance Term Policies
Life insurance term policies, or term life as
they are commonly known, are considered pure
insurance by the industry. Term insurance
policies offer you protection during the duration
of the policy, and if you die while it is still
in force, your survivors are paid the value of
the policy. This value is paid out no matter how
long you have been paying your premiums as long
as the policy is still active. You can take out
term policies for 10, 20 and 30 years. Your
premiums will be based on the duration of your
policy, and other factors such as your age and
There are different types of life insurance term
  • Deposit term insurance is a 10 year policy that
    returns a deposit once the policy expires.
  • Re-entry term insurance gives you the option to
    renew your policy at certain intervals. If you
    can prove you are in good health or better health
    than when you took out the policy, you will have
    the benefit of lower premiums. If you are in the
    same or worse health, you would then continue to
    pay the same amount.
  • A renewable term policy gives you the option to
    renew your policy without having to undergo a
    medical exam. Each year the premiums go up with
    this type of policy.
  • Non-renewable policies are for a specific amount
    of time and are not up for renewal.
  • Convertible policies give you the option to
    increase your protection or switch to a whole
    life policy if your circumstances change, such as
    you get married or start a family.

Whole Life Insurance Policies
Whole life insurance policies offer protection
for your family and are usually for the life of
the insured. These types of policies also offer
you an investment and savings opportunity. The
premiums are usually more expensive then term
policies since part of the premium is invested to
give you a return on your money. Whole life
policies should be considered long term
commitments since the full pay-out amount is not
available until the policy reaches its maturity
date, usually 20 or more years after you take the
policy out. When deciding  Term Policy , the type
of insurance that is best for you can be answered
by a consultation with an experienced insurance
agent. By examining your age, health, marital
status, type of job and lifestyle, an experienced
insurance agent can help you to decide if life
insurance term policies or whole life policies
are best for you.
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