Choosing Individual Life Insurance – Term And Permanent

When you decide that it is time to secure individual life insurance, you’ll no doubt be faced with many options and decisions. The biggest decision you will have to make when selection your individual life insurance policy is whether to purchase a term life insurance plan or a whole life insurance plan. Each choice has it’s own costs and benefits, and because everyone is different, you should consider your own needs and circumstances when make this important decision. The wrong choice when selecting your life insurance could cost your estate and your loved ones money.

Term life insurance is a less expensive way to secure individual life insurance. As the name suggests, it covers an individual for a certain period of time, usually ten or thirty years. Of course, the downside to this policy is that after that term expires, you are no longer insured. That means you’ll be older, possibly with health problems or other reasons that will make you less desirable to life insurance companies. Most term policies will lay out a current payment schedule and a maximum per annum rate. You may have to show good health to continue at a lowered premium rate, and some policies even allow you to convert a term policy to a permanent policy with the evidence of continued good health.

On the other hand, permanent life insurance, also called whole life insurance, is an individual life insurance policy that covers you for your entire lifetime. That means that you’ll never run out of coverage, no matter what happens to you. Permanent means permanent. Of course, because you are covering yourself for the rest of your life, and the policy is guaranteed to pay out, since no one lasts forever, these policies tend to be more expensive in the long run. Keep in mind, too, that permanent individual life insurance premiums stay the same over the years, in contrast to term life insurance premiums, which continually increase. Additionally, most permanent life insurance contracts allow you to borrow against the value of the policy, making it a source of investment.

While you should not consider your life insurance as solely an investment, you should think about all the ways that your life insurance policy is a safeguard for your family. Purchasing the right individual life insurance policy for you and your family’s needs is important, so if you have questions, contact an estate planner or a trusted insurance broker today.

By: R Quade

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TermLifeInsurance.com provides information on individual life insurance and more. Visit TermLifeInsurance.com to learn more about the annuity information that is available to you.