Freedom Life Insurance offers both term and permanent life insurance to clients interested in purchasing them. If you are not sure what these types of life insurance are, it can be hard to know which one to choose. Here are some tips to help you pick between a term life insurance plan and a permanent life insurance plan.
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Term Life Insurance
A term life insurance plan is specified for a period of time and enables you to pick a policy with a term the length you need. You are able to get a large amount of life insurance while having a relatively limited budget. This insurance plan will only pay out if you die during its term. Your coverage will stop if you are still alive at the end of the term unless you renew the policy or purchase a new one. You will not build any equity with this type of life insurance. Convertible term policies exist that allow you to change over to a permanent insurance plan without a medical examination if you are willing to pay higher premiums. Your premiums will be lower when you are younger and will increase as you age.
Permanent Life Insurance
Freedom Life Insurance offers permanent plans that provide life insurance for as long as you live. When you die, a permanent policy will pay a death benefit. Permanent life insurance plans will accumulate a savings element that can be borrowed against for different purposes. This savings element can help to pay premiums if you are otherwise unable to. You are even able to borrow against these funds if you have bad credit. This type of loan uses your death benefit as a collateral, and if you die prior to paying it, the insurance company will collect what is due before paying your beneficiary. Premiums are usually higher for permanent policies than for term policies but the premium will remain the same no matter what your age.
Freedom Life Insurance offers both term and permanent life insurance plans that should fit your needs. Pick the one that works best for you!