You Should You Choose Term Insurance Instead of Whole Life Insurance

“Different strokes for different folks.”

When it comes to life insurance, it’s important

that you keep that saying in mind.

Most people are familiar with “whole” life insurance.

This is the kind of insurance where you will get back a certain amount of money when it

“matures” at the end of the insured period.

What you may not know is that there is another

form of life insurance called “term” life insurance.

Similar to whole life insurance, when

you get a term life policy, you pay a sum of money (the “premium”) to the insurance

company, and in exchange the company promises to pay out a certain amount of money should

you die during the period for which you are covered under the policy.

In other words, you

are buying insurance coverage for a certain period of time.

But unlike whole life insurance,

you will not get back any money at the end of the insured period when you buy term

insurance.

You may be saying to yourself, “But won’t I be throwing money down the drain?

After all, I won’t get back a single penny after the insured period!”

Hey, I understand how

you feel. But rest assured that term insurance is still a very idea, and I highly

recommend that you use it to your advantage.

So, why should you still consider term

insurance?

Well, one advantage of term insurance is that it’s cheap. In fact, for the same

amount of insurance coverage, the premium for a term policy is only a small fraction of the

whole life policy’s premium.

And this is why term policies are a great way for you to make

sure you are sufficiently covered. If you’ve never checked out the premiums of a term life

insurance, I highly suggest that you go do it soon. You’ll be surprised at how cheap it is

to bump up the insurance coverage for yourself!

Plus, you can use the money you save from

the lower premiums to invest in some other areas that can potentially generate higher

returns for you. This strategy is generally known as “buy term and invest the difference”,

and it’s something I recommend that you take into consideration as you do your financial

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