Should I Purchase Term or Permanent Life Insurance?
Both term and permanent life insurance policies have many advantages and disadvantages. Buyers should weigh the pros and cons of each carefully before purchasing a life insurance policy to ensure that their specific needs are met.
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Term Life Advantages
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The primary advantage of term life insurance is that it is the most inexpensive type of life insurance. This allows the insured to use the savings for other priorities including paying off debt and saving for retirement or college expenses. Term life insurance is useful for those with time-based needs such as young children and mortgage payments.
Permanent Life Advantages
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Permanent life insurance comes in many varieties. Though different types vary in some ways, each provides a defined death benefit and has a savings account built into the policy. Permanent life insurance policies provide a way for individuals to save money and provide a guaranteed death benefit that does not expire. Permanent life insurance policies are useful for paying taxes and expenses on large estates.
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Choosing Both
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A buyer does not have to choose solely between either term or permanent insurance but can buy both. This allows a buyer to have a larger amount of coverage initially yet still carry some coverage later in life.
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