Save Money and Buy Term Life
Posted by Trey Norwood on Saturday, December 5, 2009
Under: Life Insurance
The choice between term and whole life insurance in South Carolina has been a long debated issue. While a whole life insurance policy may have its benefits to those inclined to spend a high premium for permanent life insurance they may or may not need at a future point in time, many financial advisors feel that term life insurance is the wiser of the two choices. While it is important to weigh all of your needs and options before purchasing a life insurance policy, a term life insurance policy is generally accepted as the best financial purchase.
The Basics of Whole and Term Life Insurance
•Term Life Insurance
A term life insurance policy can be purchased for a specified amount of time. This time period generally runs anywhere from a few years up to 30 years at a fixed rate premium for the duration of the policy. When the term has expired, the policy can be renewed if continued coverage is desired. Of course, you would have to qualify medically.
•Whole Life Insurance
A whole life insurance policy is a permanent plan that includes a savings and investment plan. While the premiums on a whole life policy never change once the plan has been purchased, whole life insurance policies carry much higher premiums than term life policies. The life insurance company from which the plan was purchased invests these high premiums into a savings or investment plan of their choice.
Advantages of Term Life Insurance Over Whole Life Insurance
•Flexibility for Life Changes
Many people find that they only need their life insurance policies for a temporary amount of time. Financial situations and needs change over the duration of an individual’s lifetime. A term life insurance plan allows for these life changes. A term policy allows for flexibility in the amount of coverage provided, as well as the time period the insured may need the life insurance policy.
•Lower Premium Rates
The premium rates for a South Carolina term life insurance policy are much less expensive than those paid for a whole life plan. This is because term life insurance is strictly insurance, and does not include any extra costs associated with savings or investment plans, as whole life insurance does. While investing in a whole life plan may allow the policyholder to accrue some savings that can be borrowed against during the lifetime of the insured, the money saved by purchasing a term life insurance with lower premiums can be invested however you choose to invest them. With a South Carolina whole life policy, the policyholder plays no part in the investment of the premium amounts paid to the insurance company. The company from which the plan was purchased makes this decision with no input from the insured.
In a Nutshell
When faced with the dilemma between purchasing a term life insurance or a whole life insurance policy, the long and the short of it boils down to the fact that you are saving money by purchasing a term life insurance plan. Not only are you paying much lower premiums, but also have the choice of how long to continue coverage, as well as the flexibility to change the amount of coverage at a future date if the need arises. When it comes to term life insurance, in a nutshell, you get what you are paying for – life insurance. You are not paying needless extra costs for investments that are not even of your choosing.
The Basics of Whole and Term Life Insurance
•Term Life Insurance
A term life insurance policy can be purchased for a specified amount of time. This time period generally runs anywhere from a few years up to 30 years at a fixed rate premium for the duration of the policy. When the term has expired, the policy can be renewed if continued coverage is desired. Of course, you would have to qualify medically.
•Whole Life Insurance
A whole life insurance policy is a permanent plan that includes a savings and investment plan. While the premiums on a whole life policy never change once the plan has been purchased, whole life insurance policies carry much higher premiums than term life policies. The life insurance company from which the plan was purchased invests these high premiums into a savings or investment plan of their choice.
Advantages of Term Life Insurance Over Whole Life Insurance
•Flexibility for Life Changes
Many people find that they only need their life insurance policies for a temporary amount of time. Financial situations and needs change over the duration of an individual’s lifetime. A term life insurance plan allows for these life changes. A term policy allows for flexibility in the amount of coverage provided, as well as the time period the insured may need the life insurance policy.
•Lower Premium Rates
The premium rates for a South Carolina term life insurance policy are much less expensive than those paid for a whole life plan. This is because term life insurance is strictly insurance, and does not include any extra costs associated with savings or investment plans, as whole life insurance does. While investing in a whole life plan may allow the policyholder to accrue some savings that can be borrowed against during the lifetime of the insured, the money saved by purchasing a term life insurance with lower premiums can be invested however you choose to invest them. With a South Carolina whole life policy, the policyholder plays no part in the investment of the premium amounts paid to the insurance company. The company from which the plan was purchased makes this decision with no input from the insured.
In a Nutshell
When faced with the dilemma between purchasing a term life insurance or a whole life insurance policy, the long and the short of it boils down to the fact that you are saving money by purchasing a term life insurance plan. Not only are you paying much lower premiums, but also have the choice of how long to continue coverage, as well as the flexibility to change the amount of coverage at a future date if the need arises. When it comes to term life insurance, in a nutshell, you get what you are paying for – life insurance. You are not paying needless extra costs for investments that are not even of your choosing.
In : Life Insurance
Tags: "life insurance" "south carolina life insurance" "term life insurance" "whole life insurance"
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Trey Norwood is an independent life insurance and health insurance consultant in South Carolina. He specializes in annuities, long-term care insurance, individual health insurance, group health insurance, life insurance, final expense insurance, Medicare supplement insurance and Medicare Advantage. He provides annuity, long-term care insurance and life/health insurance quotes from top-rated life, health and Medigap insurance carriers operating in South Carolina. Trey Norwood is a recognized expert in the individual health insurance and group health insurance market in South Carolina. If you are self-employed, retired, or just tired of paying too much at work for life and health insurance in South Carolina, Norwood can help.
