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The Difference Between Whole Life Insurance and Term Insurance

When you know that you want to get life insurance, you should be sure that you are wise about the type of insurance you purchase. Whole life insurance and term insurance are often two types of life insurance that individuals must decide between.

It is important to understand the difference between whole life insurance and term insurance before decide on either of the policies. A term policy is life coverage only. This means that on the death of the insured the insurance policy will pay the face amount of the policy named by the beneficiary. As you are purchasing term insurance you can purchase it for periods of one year to 30 years.
On the other hand, whole life insurance will join a term policy with an investment component. The investment can be in bonds or even in money-market instruments or stocks. As the policy builds cash you can borrow against it.

While you are deciding between the life insurance policies, you should be sure that you talk with your family and your insurance agent. Find an insurance policy that is going to work for your financial situation and the needs that will need to be filled if the policy is cashed.

Life insurance is an important investment. Take time out of your busy life to find the life insurance policy that will provide you with the coverage and the protection that you need.