Types of Life Insurance: Term, Whole Life, Mortgage, Disability, No Medical
Term Life Insurance
Term Life insurance is a low cost alternative to whole life insurance. The way typical term insurance contract works is that it starts out low price and then at set intervals it increases. For instance Term 10 would maintain a set price for ten years and at the 10 year anniversary would rise in price. These prices are indicated in your contract. Term 20 is exactly the same but the price is guaranteed for 20 year period before it is set to rise.
Term Insurance is usually used to cover debt or temporary needs such as:
Lines of credit
Whole Life Insurance
Whole life insurance is a more expensive but the cost stays the same until death. Some types of Whole life have cash values that accumulate through the life of the contract and others may have paid up insurance or other benefits.
Whole life vs Term life
Whole life vs Term Insurance
There is no easy answer to this. This will depend on why you need the insurance. What stage of life you're in. How much debt you have. The number of dependents you have. There is a host of variables that will influence your decision to have whole life or term. Only a qualified licensed advisor should give you advise for your unique situation
Universal life can either be whole life or term life with an investment element. These policies can be an effective retirement component in a sound financial plan. They accumulate wealth while protecting your family. Again, only a qualified licensed advisor should give you advise for your unique situation.
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CBC Market Place did and independent study on Mortgage Insurance and found some valuable information. Please watch the above.