Life Insurance US - Term and Whole Coverage
Introduction to policies, plans and companies
Investigating term or whole life insurance for you or your family is a practical and necessary matter for most families. In effect you are protecting the people who you love, providing them with some financial "buffer" should you unexpectedly die. In addition to "death benefits" you might well calculate certain "investment benefits" into the purchase of term policies, or alternatively whole policies, where the term policy is surrendered. Besides "death benefit" the term policy, you might well consider policies which cover "critical illness", since you'd lose a source of income plus your dependants would have to pay for critical care.
In the US, term life insurance you essentially place a bet with a licensed term life insurance company that you will die within a certain period, therefore will insure yourself for a certain amount of money if you do die. If you do die during that period, a lump sum will be paid out to your dependants. If you do not die during that period, you will not receive any benefit. For this reason, the premiums that you pay for term life insurance will be relatively low, depending on your age, health, amount you want to be covered for and the period for which you want coverage. Your term life insurance policy cannot be extended, even though you might then be critically ill.
On the other hand, whole policies may make better sense for you. With whole policies, you obtain protection plus ongoing cash value. In other words, a whole policy establishes a benefit to your family plus it acts as a conservative financial investment. The cash value of a whole policy builds over time on a tax-deferred basis. In certain whole policies, the underwriting firm pays policy holders a regular dividend. In some cases you can reinvest or "roll up" your dividend into your whole policy in order to increase the policy cash value or increase your coverage. The cash value increase can be used while you're alive. For example, you might use it to supplement retirement income or perhaps contribute to your children's education costs. However, the primary purpose for the whole policy is protection. Whole policies are more expensive than term policies. And, while whole policies cash values can increase your cash values decrease when you withdraw or borrow against the policy.
The sites listed on this site cover all the regions of the USA and Canada.