Life insurance
Term Life Insurance basics:
- Coverage for a period of your life or a "term".
- There is no equity, there is no cash value.
- Lower premiums, higher coverage's.
- Rates can change after specific terms expire.
Whole Life Insurance basics:
- Protection carries with you your entire life.
- Builds cash value and equity
- Permanent insurance, not for a specific period.
- Premiums are higher than term but is more valuable in the long run.
You should consider Life Insurance if any of the following are true:
- You have children
- You are married and your spouse depends on your income
- You own a business, especially if you have a partner
- Your retirement savings and pension won't be enough for your spouse to live on
- You have an aging parent or disabled relative who depends on you for support
- You have a substantial joint financial obligation such as a personal loan for which another person would be legally responsible after your death
- You have a large estate and expect to owe estate taxes