Term and cash value are the two main categories of life insurance. The best choice for your circumstances is likely to depend on how much you are willing to pay for premiums and how long you believe you will need the insurance. With both term and cash value policies, your beneficiaries receive death benefits free of income taxes. Depending on what your needs are will decide if term life insurance vs. cash value is better in your situation.
Term Life Insurance Basics
Term insurance, which typically is less costly, provides a death benefit in return for premiums paid. The length of time (or term) that the policy is in effect is specified in the policy. According to the Insurance Information Institute, the most popular type of a term life insurance policy is for a 20-year term. In many instances, consumers are not able to buy policies for a term that extends beyond their 80th birthday.
[…]
