Term life and whole life. You may know they’re both types of life insurance, but when it comes time to buy a policy, will you know which one to purchase? To learn more, take this short quiz from SBLI USA Mutual Life Insurance Company.

True or false? A term life policy…

1) Builds cash value you can borrow against. T / F
2) Has a premium that stays the same even after renewal of the policy. T / F
3) Lasts for the rest of your life as long as premiums are paid. T / F

True or false? A whole life policy…

4) Lasts for the rest of your life as long as premiums are paid. T / F
5) Has an increasing premium over your lifetime. T / F
6) Features cash value that accumulates tax-deferred. T / F

Now, how does your knowledge stack up? Here are the answers: 1) F 2) F 3) F 4) T 5) F 6) T

If you got all the answers right, the information that follows will just be a refresher—Congratulations! If not, you could benefit from a little education on the topic of life insurance.

Aside from the peace of mind it offers, life insurance is a tool that may help provide financial security for your loved ones in the event that something should happen to you. Most financial planners consider insurance a critical element in building a strong, diversified financial plan.

So what kind of policy is right for you? Term life or whole life? It depends on the amount of insurance you need, your budget, and your estimated length of commitment.

* Term Life

A term life policy offers coverage for a specific period of time. Term policies with a renewal provision may be renewed at the end of the term without additional proof of good health. Premiums are initially more affordable, though they may increase with each renewal. It’s the ideal coverage for people whose insurance needs may decrease over time, for people who are covering “disappearing” costs such as vehicle loans and mortgages, or who need maximum coverage during a child’s education or rearing.

* Whole Life

Whole life is permanent coverage, offering cash value that increases over time. Premiums do not increase; they are locked in for life the day you sign your contract.

When you’re ready to start shopping for a policy, go to SBLI USA, a financial empowerment company offering a wide range of products to value-conscious consumers. To learn more about which life insurance policy is right for you log onto www.sbliusa.com or call a licensed agent toll-free (866) 787-2932.

Courtesy of ARAcontent

# # #

SIDEBAR:

Nationwide Survey Reveals that U.S. Adults are Alarmingly Underinsured

According to a nationwide survey commissioned by SBLI USA Mutual Life Insurance Company and conducted by Harris Interactive, Americans have a lot of reservations when it comes to life insurance.

The September 2006 survey of 2,500 U.S. adults 18 years of age and older found:

* 47 percent are not sure what type of life insurance they need
* 23 percent don’t know where to get life insurance
* 47 percent have no life insurance at all
* Only 49 percent of adults said they know exactly how much insurance they need as their families grow

Related posts:

1. Private Event Insurance: Protecting Investments on Your Special Occasion
2. Finding Mortgage Insurance
3. Insurance Matters: Take inventory of your home for protection
4. Tips on Creating a Savings Plan for your Home Down Payment
5. Why Health Savings Accounts are Great Financial Tools

Give us your rating of this article below!

Trackback URI | Comments RSS