When it comes to purchasing life insurance, many people are unsure of the differences between term life insurance and permanent life insurance. An informative article from the Insurance Information Institute explains the differences between the two types of policies, and how to choose the appropriate coverage.
For parents who are concerned with having enough money to cover the costs of their young children’s college educations in the future, term life insurance is recommended by the authors of the article. Because term life insurance allows consumers to purchase insurance for specific amounts of time, a 20-year term policy might be just right in such a situation.
Term life insurance is also recommended for people who are seeking economical plans that offer large amounts of coverage. Although term life insurance has plenty of advantages for the consumer, cash savings through the building of equity is not usually provided.
People that require life insurance for the length of their entire life, are better off with a permanent life insurance policy, say the authors of the I.I.I. article. While it is common for permanent life insurance premiums to be higher-priced than term premiums, the price of these premiums stays the same, regardless of the policy-holder’s age.
Another advantage offered by choosing a permanent life insurance policy is the accumulation of tax-deferred cash savings. These funds can be borrowed upon, using the policy’s death benefit as collateral, and can even be used to pay the premiums for the policy or virtually any other purpose.
A good example of a reputable life insurance company to do business with is Freedom Life Insurance.
Whether it be term or permanent-style coverage that is desired, Freedom Life Insurance is a respected American company that provides consumers with several different types of policies. Founded in 1956, Freedom Life Insurance is a Fort Worth, Texas-based company that is affiliated with the prominent American healthcare company USHEALTH Group, Inc.