In this video I will breakdown Term Life Insurance vs. Whole Life Insurance, to give you an idea of which is best for you.<br /><br />Life insurance is one of those necessary things in life, because life happens! It's better to have life insurance and not need it, than need it and not have it.<br /><br />The fact is, we all eventually need life insurance and this video will hopefully help you decide which is best for you.<br /><br />Term life insurance provides coverage for a specific amount of time (usually 20-30 yrs). If you or your spouse passes away during this time, your beneficiaries will receive a payout from the policy.<br /><br />Term life is much more affordable than whole life. Typically this works out to be $7 per month in 20 yr term, vs $100 with whole life cash value.<br /><br />Term life has no cash value until the death occurs, so it’s not worth anything until you need it, which is fine.<br /><br />Whole life is a form of permanent life insurance with 3 components:<br />1. Premiums<br />2. Death Benefits<br />3. Cash Value Accumulation (savings aspect)<br /><br />When you pay your premium a portion is applied to the death benefit and cash value.<br /><br />The first 5-10 years a majority is applied to the death benefits (cost of insurance) along with fees and commissions.<br /><br />After this, the cash value will receive a great portion of the premium<br />Beneficiaries are only entitled to receive the death benefit portion of the policy when you die!!<br /><br />You have no choice in how the life insurance company applies the premium you pay.<br /><br />You can cash in or surrender your policy at any time to get your money out, but you lose the insurance!
