If you’re considering buying life insurance, you have to know if the agent will show you all the products available for you to pick the one that will best satisfy you and your loved ones‘ needs and goals. The true secret here is making sure you know what to ask for so that you have the proper things to compare. You need to ask the proper questions in order to get the answers and details you need for you to make an informed choice.

When you deal with the average agent you will most likely be given policies which are of a type that’s referred to, as „cash value“ or „permanent“ insurance. These types of products are usually called Whole Life, Universal Life, Variable Universal Life or some version of those names. These are products where the insurance company has bundled together a death benefit and some kind of account that accumulates a balance of cash. The way these insurance policies work is part of the monthly amount paid to the insurance company that is used to buy the death benefit, pay any needed fees, and also the remaining amount of the monthly payment is placed in an account where it’s supposed to earn interest and grow.

What most people do not know is that there is another option available that the agent has somehow forgot to present. This other option is rarely offered to the client regularly. This is sad. It’s an option in which the customer purchases a term insurance policy and then invests the difference of the cost in a stand-alone savings/investment vehicle.

Advantages of Term Life Insurance: Consider the growing premium term policy for example. The lower premiums in the younger years result from the fact that the applicant is unlikely to die in a given period, the term period, than a more mature person. Term life insurance is actually life insurance in its simplest form taking into account mortality based on actual experience. If you’re to look at a decreasing term life insurance policy, the lowering annual premium shows the decrease in the death benefit annually, also bearing in mind the truth that the insured individual is getting older every year. Individuals like the way this is done simply because they believe that at no time they’re paying more than for the term life insurance they actually want.

Advantages of Whole Life Insurance: Comparing term life insurance vs. permanent, you see that the whole life insurance premium is full at the start. Whole life is more expensive. But you need to consider what all those dollars, would have been doing had they not been in the whole life policy. What interest rate would be available. You should also bear in mind that that dividends are not guaranteed. The advocates of purchasing term when examining term life insurance vs. permanent say that the money would be generating the maximum over that 20 year time period. The promoters for permanent life insurance think that the extra premium wouldn’t be saved or invested. There is truth in both arguments but, because each individual differs from the others, you can’t arrive at an absolute conclusion about which is best. If you can manage to purchase any kind of policy you select, do your side by side comparisons for yourself and go along with your guts.

Term Life Insurance is regarded as the popular kind of Life Insurance today which gives coverage for a guaranteed number of years. All things considered, that is what insurance coverage is for: Protection for yourself and your family.