Get Term Life Insurance HERE: https://whiteboardfinance.com/go/havenlife
In this video, I will break down the differences between Term Life Insurance and Whole Life Insurance to help you determine which option is best suited for your needs.
Life insurance is an essential aspect of financial planning because life is unpredictable! It’s always better to have life insurance and not need it than to find yourself in a situation where you need it but don’t have it.
The reality is that, at some point, we all require life insurance, and this video aims to guide you in making an informed choice.
Understanding Term Life Insurance
Term life insurance offers coverage for a predetermined period, typically between 20 to 30 years. If you or your spouse passes away during this term, your beneficiaries will receive a payout from the policy.
One of the significant advantages of term life insurance is its affordability. Generally, you can expect to pay around $7 per month for a 20-year term policy, in contrast to approximately $100 for a whole life policy that includes cash value.
It’s important to note that term life insurance does not accumulate cash value until a claim is made, meaning it holds no monetary value until it’s needed— which is perfectly fine for many.
Exploring Whole Life Insurance
Whole life insurance is a type of permanent life insurance that consists of three main components:
1. Premiums
2. Death Benefits
3. Cash Value Accumulation (savings aspect)
When you pay your premium, a portion goes toward the death benefit, while another portion contributes to the cash value.
During the initial 5 to 10 years, most of your premium payments are allocated to the death benefits (which cover the cost of insurance), alongside fees and commissions. After this period, a larger percentage of your premium will go toward building cash value.
However, keep in mind that beneficiaries are only entitled to the death benefit when you pass away. You do not have any control over how the insurance company allocates your premium payments.
You also have the option to cash in or surrender your policy at any point to retrieve your funds, but doing so means you’ll lose your life insurance coverage.
Get Term Life Insurance HERE: https://whiteboardfinance.com/go/havenlife
Instrumental Produced By Chuki:
http://www.youtube.com/user/CHUKImusic
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