It can get confusing quickly, when comparing life insurance quotes online. Sometimes, it can seem as if it is easier to understand the fine print in a car loan contract than to decipher the differences between policy offers. This article will help you to understand a few key points that can help you on your way!
Whole Life (Permanent) vs Term Life (Temporary) Insurance
A whole life policy, is permanent protection that builds what is referred to as "cash value". It is designed as a life-long insurance policy and the premiums are guaranteed to never increase. As it is permanent, it is more expensive than term life insurance, which expires and will be costly to renew, the older that you get.
So, as whole life is more expensive, you need to make sure that you are comparing "apples to apples" when comparing life quotes. When one quote is drastically less than another, for the same face value amount, you should verify that the two policies from different companies are for the same type of life insurance.
Annual Renewable Term Insurance
Frequently, the advertisements on television for insurance advertise very low rates. It is common that the insurance offered in those commercials is only annual term life insurance, which increases in price every single year. This is not a good option if you're looking for affordable protection that will last into your senior years. Annual renewable term will be very, very costly as you age and is designed to be nearly unaffordable once you get over 70 years of age.
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