How Good Is Term Life Insurance. Term life insurance is the best way to get covered unless you have a unique financial situation or lifelong dependents, in which case a permanent policy might be more suitable. As such, there's little sense in locking your money away in a whole life policy when term life insurance offers you much more financial leeway.
These policies are typically more affordable than permanent life insurance policies and are designed to cover funeral costs as well as existing debts , such as mortgage payments or student loans. Term life insurance is a contract between you and an insurance company that lasts for a specific period of time, such as 10 years, 20 years or until you reach age 65. Term life insurance with traditional investing vs.
And the rate of growth on whole life policies is often lower than that of a traditional investment account like a 401(k) or ira.
Term life insurance just means it lasts for a set number of years, or term. Term life insurance policies are available for lengths of 10, 15, 20, 25 or 30 years. For example, term insurance can be used as a rider to a cash value insurance policy in order to increase death cover for a specific time period e.g. And the rate of growth on whole life policies is often lower than that of a traditional investment account like a 401(k) or ira.