There are two types of life insurance policies: Whole Life and Term Life
Term Life Insurance?
Term: It’s the simplest form of life insurance and it usually provides coverage for a specific amount of time (usually 20–30 years). If the insured passed away anytime during the term of the policy, the beneficiaries (those selected by the insured tend to inherit the face value of the policy) the term life insurance policy. Term life insurance is less expensive than a whole life policy, and it doesn’t ‘t accumulate any cash value
Whole Life Insurance?
Whole: The premiums on whole life insurance are generally more expensive than term life for a couple of reasons. Over time, a portion of the premiums you pay for a whole life policy become part of the policy’s cash value. The cash value of a whole life policy provides an additional asset for your family. Whole life coverage lasts throughout your entire lifetime versus a set number of years. Term life insurance can become very costly to renew after the policy expires, and the insured might end up paying Then when it’s time to renew the premium will be way higher. Whole life insurance costs more than term life for several reasons: The whole life policy is designed to build cash value. In addition to the cash value accumulation in the policy, some life insurance companies may also provide dividends to their policy holders.