Life Insurance Question Arizona AZ

Reader’s Question:

What is the truth about Life Insurance? I heard from a friend that if I will get Cash Value Life Insurance, I will become wealthy as I grow up and retire, how true is it? Please let me know because I am planning to get one. Thank you.

Kyle

Deer Valley, AZ

Good question. Kyle, you actually hit it!

There is truly a myth regarding a Cash Value Life Insurance that once you get it, it will survive you years after you retire. First, I would like you to know what this type of insurance is and afterwards, let me see if you could give yourself better answers for your own question, dear.

There are actually two major types of life insurance: term and whole life. I’d say Term Insurance can be the simplest form of Life Insurance. It pays only if death occurs during the term of the policy, which is usually one to thirty years. It also has two categories: level term and the decreasing term where the first one states that the benefits stay the same throughout the duration of the policy. On the other hand, the benefits of the decreasing term drops for certain cases which is also indicated in the policy.

Whole Life Insurance is also sometimes called permanent life insurance because it will definitely pay you even you live for 100 years. This is the type which provides coverage throughout the insured’s lifetime and may include an element that builds cash value.

You ask your agent over this matter, Kyle. They will be more than willing to discuss this matter with you. Always keep safe!