Term Life Insurance Policies
Life insurance policies can be categorised as either term life insurance or permanent life insurance. Both types of policy provide the same basic type of insurance cover, the difference being the time period they provide protection for.A Term Life Insurance Policy is the most basic protection. The cover pays a specific amount to the policy beneficiaries upon your death. The death benefit and the policy limit are the same and protects your family by providing the lump sum to provide financial security. The cost of term life insurance is usually the cheapest of the two policy types.
A Permanent Life Insurance Policy differs in that the policy will pay at some point, rather than expire like Term Life Insurance Policies will. Under a whole life policy, the premium will remain constant for the duration of the agreement. An additional aspect is that due to your Life Insurance Providers investing your payments a whole life policy can also provide you with a cash surplus, because they fund investments in addition to buying insurance. This cash reserve can be used in a variety of ways. Whole Life Insurance tends to be more expensive, but the cash lump sum is guaranteed as long as premium payments are maintained.