Looking at term life insurance pros and cons can give you the best picture of whether it is the best form of life insurance for you. This article will take an objective look at term vs whole life insurance. If you came looking to get insurance quotes please fill out the form on the side of the page.
When term life insurance pros and cons are examined there are specific advantages that always come to the top. The biggest of these is the price of term policies. Whole life insurance is a much more expensive form of insurance because it includes an investment that accrues a cash value. Term life insurance is very simple insurance. Just like purchasing auto insurance you pay a monthly premium and receive insurance coverage in exchange for that premium. This means there is no real overhead in managing the policies. As opposed to whole life which requires management and that means it will cost you fees to pay someone to do the managing of the policy. Many financial advisers will tell you to get quotes for both term life insurance and whole life insurance. Once you have the quotes get the term life insurance and then take the differences of the two and invest it.
When it comes to term life insurance pros and cons they are actually tied together. The same thing that makes term life policies inexpensive can be perceived as a disadvantage. Because whole life insurance has a cash value that increases over time it can be used in multiple ways. You can use it as leverage or withdraw the cash in an emergency. Overall whole life presents its largest advantage in this cash value. The final con to term life is that the policy only lasts for a specific period of time. Common lengths of time are five to thirty years. With standard whole life the policy tends to become fully funded at 100 years old.
So this is where it comes down to preference. When you look at the term life insurance pros and cons above it ends at control. If you want to completely control your investments and get the maximum amount of life insurance protection then term life insurance is your best bet. If you want the security of an accruing investment and are willing to pay for it then whole life will work for you. Knowing what works best for you will help you weed through the term life insurance pros and cons. If you have any questions or if there is any way we can serve you, our team at TermLife360.com is happy to be there.