Term V/s Cash Value
By Priya Jestin, Staff Writer
For most of us, life insurance is not something we think about too much. Most people just prefer to check out their options, take an insurance policy that suits their budget and requirements and then forget about it. However, now with the growing number of life insurance options, it will be foolish to avoid checking them out just because we aren’t too interested. When you look to buying a policy, it does help knowing the options available to you.
One of the basic choices you’ll need to make is whether to buy term or cash value. Term pays off only when you die whereas whole life gives offers you term life plus a savings account; so you get a payoff after you’ve paid the policy premiums for a certain number of years. If you do want to go in for a term policy, ensure that it is convertible to a cash value policy so that you can convert and guarantee yourself another period of fixed, albeit higher, premiums.
If you enjoyed this article, please bookmark it at del.icio.us »