Tip & How-To about Finance
The main difference between Term Life Insurance and Whole
life insurance lies in what happens to the money.
In Term Life Insurance, you pay the monthly or yearly fee.
If you die when the policy is active and paid, then your family will be covered
and receive the amount which you have insured. If you don't die before the
policy expires, you (or your family) receive nothing.
The premiums are lower than Whole Life Insurance but they
change as you age.
Whole Life Insurance (AKA Cash-Value Insurance) has both
insurance policy and Investment account.
The premiums are higher than Term Life Insurance but they
are fixed (you pay the same premium even when you age). If you die, your family
receives the death benefit but you can also cash the money when you are older
or retired.
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