Do you already possess one type of insurance but still want another one? There are a bunch of options for insurance policies, which means you have plenty of flexibility in finding one that will give you the right benefits and still be within your financial bracket.
It is possible to convert an AARP term life insurance plan into a whole life plan or supplement the term with an added level that will cover a particular pay for a different expense in your life. Which policy do you need to protect your family? The following is a simplified answer highlighting essential things in the term and whole life insurance plans. Keep reading for an in-depth understanding of all the details and how each one will fit into your life.
Comparison Between Term Life And Whole Life Insurance Plans
Term Life Insurance
The insurance covers you for a certain period, after which it becomes obsolete, and you would have to apply for a completely new one if you do not renew it before the end date. This plan covers all the expenses incurred by death, with the death and fixed policy term underwritings.
The term insurance plan sometimes goes by the name ‘pure life insurance, because it is designed only to provide coverage if you die during the policy’s term. The meaning behind the name is that the term will only cover your funeral expenses and the medical bills, but not the payout or perks that go to the beneficiaries.
Whole Life AARP Life Insurance
This plan is among the most straightforward life insurance policies because it offers coverage that will last throughout your life. Its main difference with the term insurance plan is that it does include a cash component and the option to grow the sum over time based on the tax defer program. You can use the plan as collateral for a loan, supplementing your premium or retirement programs. Some main types of whole life insurance plans will depend on the following factors:
- The guarantee of a death benefit
- A cash value that will grow at the set rate
Pros And Cons Of Term And Whole Life Insurance Plans
- Term life typically has a lower initial premium, while the whole life plan has a higher rate.
- The premium of a term life plan could increase over time, while the whole life plan will more than likely maintain the same rate.
- A term life plan does not offer permanent coverage, whereas a whole life plan does offer a permanent coverage policy.
- Typically, the AARP term life lasts about 20-3- years, while the whole life will last throughout your life.
- You need a health exam for the simplified term life plan, and a mandatory exam is necessary for the whole life plan. A guaranteed term plan has no medical exam coverage.
- The term life is not eligible for company dividends, whereas a whole life plan does give you the option to get dividends.
Do you know which plan is best for you? The exact AARP insurance depends on several factors, such as your age, the status of your health, financial needs, and more. Contact us to get a breakdown of the best AARP life insurance policy for you from different companies around the country.