Whole Life Vs. Term Life Insurance – The Truth About Term Life Insurance Premiums

Term life insurance is usually much cheaper than whole life insurance as far as the monthly premiums are concerned. But term life insurance is actually a trap. It is only designed to make money and leave you standing in the rain.

Click Here Now For A Free Life Insurance Quote!

It is often understood that the “term” relates to how long the policy will be in effect. That is wrong. If you read the fine print, you will find out that it only means how long the monthly premium is going to be guaranteed. After the “term” the monthly premium will go up. Very often it will go up markedly.

The actual term of that insurance is 100 years usually. That means only if you die after reaching the age of 100 years, your loved ones are eligible to receive any benefit.

Click Here Now For A Free Life Insurance Quote!

Why does the rate go up after the “term”? Very simple: It should prompt you to let the insurance lapse and the company has made another chunk of money.

Another version is that after the “term” they will try to sell you a real life insurance (whole life insurance). But this might be contingent on a new examination from your doctor. Since you then are much older, you might have higher risks and bang the premium will be a lot higher.

What to do: Only buy a whole life insurance policy. If you feel you have to throw away you money and get nothing in return, go ahead and buy that term life thingy.

It is always good to do term life insurance comparisons if you are in the market for a term life insurance. You want to make sure that the policy that you are going to buy will fulfill the intended purpose. Comparisons of different companies and different policies are a very wise idea.

Conclusion: The story Whole Life vs Term Life Insurance only has one outcome: You get a decent whole life insurance policy and everything will be fine.

We have many more Life Insurance Help Articles Now Available.