Two Ways To Protect Your Income
Section 13 Module 4
1. Term Life Insurance - Rent Your Protection
This is the cheapest form of insurance. It is very similar to renting a home.
- You pay rent a home for a set term - typically a year.
- You pay a rent for this term, typically every month or quarter.
- When the term finishes, you don’t get the rent back, because you lived in the home.
How Term Life Insurance Works
- Premiums are cheaper than Whole-Life Insurance.
- Pay premiums as long as you are covered.
- You don’t get premiums back at the end of the term.
- Because you were covered during that time.
2. Whole Life Insurance - Own Your Protection
This is an expensive form of insurance. It is very similar to owning a home.
- You pay your mortgage for a set number of years - typically 10-20 years.
- You own the home for life once the payments are complete.
- You get back some money when you sell the home.
How Whole Life Insurance Works
- Premiums are more expensive than Term Life Insurance.
- Pay premiums for a fixed term, typically 7-20 years.
- You are covered till age 95.
- You can get back some money, if you cancel the policy.