Understanding the difference between term, whole, and universal life insurance is essential in order to get the best policy for your needs.

Term life insurance is only available for a given number of years (or term). This is usually 10, 15, 20, 25, or 30 years. If you pass away during this period, your designated beneficiaries get financial benefits.

Whole life insurance, on the other hand, as its name suggests, lasts throughout your life. This also makes the premiums for this type of insurance more expensive. These policies offer death benefits and steady premiums.

Term life insurance is the most affordable type of life insurance. It is a good start if you want to get life insurance and know your family will be safe if you pass away. Some life insurance policies come with riders (or extra benefits), such as the possibility to add accidental death insurance too. The biggest advantage of this insurance is that its price remains stable throughout its term.

Whole life insurance lasts throughout your life, which is the main reason why you would pay a higher price to secure your family in case you pass away. The monthly premiums for this insurance remain stable and the policy has the potential to increase its cash value over time.

Life insurance premiums are calculated by taking into account several factors, including the applicant’s

·         Age

·         Gender

·         Weight

·         Height

·         Health status (any known conditions)

·         Occupation

·         Hobbies

All these enable insurance companies to assess each individual’s risk. The more at risk a person is of dying earlier, the more the premiums will cost.

To get lower premiums for a term or whole life insurance, you should buy one when you are young. The older you get, the more at risk you are of developing health problems, which increases your life insurance cost.

It is possible to get life insurance even in your sixties. However, at this age, you might only qualify for permanent life insurance, which is more expensive than term insurance.

Yes, many insurance carriers offer this possibility. However, you will more than likely pay more for your monthly premiums after the conversion.

Life insurance is useful if you have children or other dependents. If you pass away, the insurance will provide them with financial benefits. If you’re single, you might not necessarily want to invest in life insurance.