The right type of insurance depends usually
on two factors:
- Your personal and family
needs.
- Price - Price Comparison
Some needs might be of temporary nature.
- Raising children
- College planning for
children
- Life insurance until
retirement
- Mortgage insurance
- Business planning (Buy-Sell
or Key-Man)
Term Insurance will usually be sufficient
to cover such temporary needs. You may buy term insurance
for periods of 1, 5, 10, 15, 20, 25 or 30 years.
Permanent insurance would be a better fit, if:
- You want to build cash
value
- You need insurance for
30 years and longer
- You want to lock in
the same premium for life
- You want stability to
plan for the future
- You want to combine
your life insurance with a savings plan
Universal Life and Whole Life
will be the best choice to meet those needs and wants.
You should consider Term with ROP (Return
Of Premium) if you want a cash value policy but do not want
to pay the higher premium.
Term with ROP is commonly viewed as compromise between Term
Life and Permanent Life*
insurance.
* Term with ROP cannot be compared
with Universal or Whole life insurance since no cash value
is accumulated and the death benefit is only temporary. However,
term with ROP will refund all premiums paid at the end of
the term.
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