If you are considering the purchase of a life insurance plan, you may be wondering if life insurance coverage lasts for your entire lifetime.
This is a very important question to answer before choosing a life insurance policy.
The answer is, it depends on the type of life insurance policy you own, and how long you live.
There are two basic types of life insurance: Term and Permanent.
Term life insurance usually lasts for a period of 30 years or less, depending on the duration of coverage you choose to purchase.
If you die during your Policy Term, the death benefit is paid out to your beneficiary.
However, if you are alive when your Policy term ends, then your coverage expires, and there is no death benefit paid out on your insurance policy.
Permanent life insurance is coverage that lasts your entire lifetime, regardless of when you die.
This type of policy pays out a death benefit upon your passing, and also builds some cash value inside your policy over time, from which you may take a loan if needed.
However, permanent life usually costs up to 5-10 times more for the same amount of life insurance, compared to term life policies.
Why is Term Life Insurance So Much Cheaper Than Permanent Life?
Which Type of Life Insurance is Right for You?
The answer lies in the question, What Goals Do You Want Your Life Insurance Policy to Accomplish?
Once you know the answer to that question, you will know which type of life insurance plan will help you meet your goals.
If you only need life insurance to last for 30 years or less, then term life will accomplish your goal.
For example, if you only need life insurance until your youngest child has moved out of the house and is on his/her own – then a term life policy for 15, 20, 25 or 30 years, may accomplish that goal, depending on the age of your youngest child.
However, if you need life insurance that will guarantee you have a death benefit paid out, no matter how old you live to be, then a permanent life insurance policy would be right for you.
Life Insurance Quotes
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