"Different strokes for different folks."
This saying is important to remember when it comes to life insurance.
"Whole" life insurance is something that most people have heard of. When this kind of insurance "matures" at the end of the insured period, you will get a certain amount of money back.
What you might not know is that there is also "term" life insurance, which is a different kind of life insurance.
Similar to whole life insurance, when you get a term life policy, you pay a certain amount of money (the "premium") to the insurance company. In exchange, the company promises to pay out a certain amount of money if you die during the time you are covered by the policy.
In other words, when you buy insurance, you are getting coverage for a certain amount of time.
But if you buy term insurance instead of whole life insurance, you won't get any money back at the end of the term.
You might be telling yourself, "But won't I just be wasting my money? At the end of the insured period, I won't get a single penny back!"
Hey, I know what you're going through. But don't worry, term insurance is still a good idea, and I strongly suggest that you use it to your benefit.
So why should you still think about getting term insurance?
Well, one benefit of term insurance is that it's not very expensive. In fact, the premium for a term policy is only a small part of the premium for a whole life policy for the same amount of coverage.
This is why term insurance is a great way to make sure you have enough coverage. If you've never looked into the cost of a term life insurance premium, you should do so as soon as possible. You'll be surprised at how inexpensive it is to increase your own insurance coverage.
Also, you can use the money you save on lower premiums to invest in other things that might give you better returns. This strategy is often called "buy term and invest the difference," and it's something you should think about when planning your finances.
Copywritten by Ethan Lewis in 2006.
