If you are not educated on the differences, it can be confusing when choosing between term life insurance and permanent life insurance. Companies like Freedom Life Insurance can help you get the most for your money. Here are a couple of tips to help narrow down your options.
Term Life Insurance
If you need life insurance for a certain period of time, this is the type of life insurance for you. You are able to match the length you need with the length of the policy. Even on a limited budget, you can purchase a good amount of life insurance. This kind of policy will only pay out if you die during the term. Your coverage will stop at the end of the term unless you renew your current policy or purchase a new one. You will not be able to build any equity with this type of insurance. Your premiums will be lowest when you are young and will increase as you renew at an older age.
Permanent Life Insurance
This is life insurance that will be available for as long as you are alive. Freedom Life Insurance offers these types of plans to their customers. Your death benefit will pay when you die. You can use this as a source of funds to borrow against for different reasons. You can even use this savings element to help you pay your premiums if you are unable to pay them otherwise. Even if you have bad credit you can borrow against this amount. Your death benefit is held as collateral, and if you die before you repay it, the insurance company will collect the amount due before they pay out to your beneficiary. Premiums for this type of policy is usually higher but will remain the same over time.
Freedom Life Insurance offers many different options when it comes to term and permanent life insurance policies. Find out which one is perfect for you and start making payments today.