LIFE INSURANCE
There are different types of life insurance. I combine life insurance into two broad categories which are permanent life insurance or term life insurance. The main differences between permanent life insurance and term insurance are shown below:
- Permanent insurance builds cash value and term insurance does not build cash value
- Permanent insurance has a level premium the term insurance premium changes at the end of the term.
- Some permanent insurance policies have flexibility with premium payments where term insurance polices do not
- Some permanent insurance policies allow you to withdraw or borrow cash and keep the life insurance policy in force
Future posts will discuss specific different types of life insurance and the benefits
