Which Type Of Insurance Policy Is Best For You?
A frequently asked question is: which life insurance is best, term or permanent? While most insurance and financial ‘experts’ will provide a uniform answer, the answer is not so clear.
Term life insurance may satisfy the needs of an individual needing short-term coverage at low-cost, such as a young family with high debt and relatively low risks. It may also suit someone needing temporary insurance, such as a mortgage of business loan..
One’s particular insurance needs should be considered. And for that, it’s necessary to understand a little more about the difference between term and permanent insurance. First, term insurance provides no return of premium: if you’re still alive when the term ends, the premiums paid are not recoverable. A term life insurance, therefore, fits well with applicants looking to cover a temporary insurance need, such as a mortgage, line of credit, or business loan..
a 40-year-old male non-smoker will pay $37.58 a year for $250,000 of term-20 coverage with Canada Life. Yet that same 40-year-old male non-smoker will pay $214.20 a month for $250,000 of 20-pay whole life coverage with Empire Life. Costs are only one consideration, but for a young couple carrying a significant debt load and raising a few toddlers it can often be the determining factor. For this reason, term insurance is most beneficial for those seeking to cover a specific temporary need, like a mortgage, line of credit or business loan, in the least expensive manner.
Posted on: Saturday, July 12, 2008 at 1:02 pm 
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