Life insurance comes in two common varieties: term life insurance and whole or universal life insurance. The main differences between these two kinds of insurance can be gleaned from their names; as you might expect, term life insurance lasts for a specific term, while whole life insurance lasts for the policy holder's entire lifespan. There are some other key differences between these two kinds of insurance that you should be aware of if you wish to make a smart decision about your life insurance needs.
Premium Amounts And Changes
One of the main things that financially responsible consumers must do in order to find the best life insurance carriers (or policies) is shop for a policy based on price. Life insurance premiums vary depending on several factors including how much coverage you are looking for and what kind of health you currently enjoy. Both kinds of life insurance can be set up to provide fixed premiums that do not change from month to month, but it is more common to have whole life insurance policies with fixed premiums.
When it comes to how much money you have to pay for life insurance, the best life insurance carriers (or policies) will give you a competitive deal on both whole and term life insurance. However, term life insurance generally has a less expensive premium because there is not an investment component to it as there is with whole life insurance. Term insurance also provides coverage for a shorter time period, which is another factor that usually makes it less expensive than whole life insurance. The cost of insurance will also vary depending on whether you are male or female and whether or not you are a smoker.
Which Is Right For You?
When making the decision about which kind of life insurance is correct for you, ask yourself some important questions:
After calculating all expenses, how much money can you afford to put each month towards life insurance?
How long will your family members be unable to provide income for themselves?
What are your financial goals?
How much do you expect your income to change in your financial future?
Recent research shows that life insurance ownership is at all-time low levels in the United States; 44% of Americans had life insurance in 2010, while 50 years ago in 1960, 72% of Americans owned life insurance. Finding insurance is important, but you also need to make sure that you find the best life insurance carriers (or policies) that are available. A great way to find the right kind of insurance policy is to use a comparison tool that allows you to get quotes from multiple carriers on the same kind of policy at once. Comparison shopping will help you learn about the prices and coverage available on whole life insurance compared to term insurance so that you can decide which policy makes the most sense from a financial standpoint.
Get started today with our free online comparison-shopping tool at www.intelliquote.com.