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Explain the advantages and disadvantages between term insurance and cash value insurance

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Explain the advantages and disadvantages between term insurance and cash value insurance

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Term insurance
Term insurance is often referred to as "pure insurance." Term policies provide life insurance coverage for a specified period of time. You can typically buy term insurance for periods ranging from 1 to 30 years. If you die during the policy period, your beneficiary receives the policy death benefit. If you don't die during the term, your beneficiary receives nothing. At the end of the specified policy term, your coverage simply ends. You may be able to renew your policy without a physical exam. Once you reach a certain age (usually 65 or 70), you may find it difficult to get term insurance coverage for more than one year--and the premiums will be expensive. You may also find it difficult to get term insurance coverage if you develop a medical condition. There are several variations of term life insurance, ...

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  • MBA, Rochester Institute of Technology
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