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You Can Cash Out Life Insurance Whether It's Whole Or Term


Of the two main types of life insurance, whole and term, generally whole life insurance is more expensive and term life insurance is cheaper.


However, the higher cost of whole life insurance includes an added benefit.

Part of the cost goes to premiums and part is invested in stocks, bonds or money market accounts.

Because of this investment, a whole life insurance policy builds cash value, whereas a term life insurance policy does not.

With a whole life insurance policy, one would definitely have the option later on to either borrow against the cash value or simply Cash Out Life Insurance if he/she were to need money in an exceptional circumstance.

If one is interested in purchasing whole life insurance that will build cash value, either for himself or a family member, he should take note of the difference between adult and child whole life insurance.

Child whole life insurance is often the best type of policy for building cash value.

For example, a parent could buy a whole life insurance policy for a child between the ages of 14 days and 14 years and at the end of a 25-year period, the cash value of the policy would be 100% of premiums paid.

This is a higher value than one would achieve with many adult whole life insurance policies.

The child could then Cash Out Life Insurance for college or other expenses, or continue to maintain the policy.

However, even though a term life insurance policy does not build cash value, it is not impossible for the owner of the policy to get cash for it.

A person called a life settlement broker may be able to convert the term life insurance policy into a permanent policy and then sell it for cash.

For example, a $1,000,000 policy could be sold for $300,000 or $400,000 cash. The cut the original owner of the policy would get from the sale would be far better than nothing, which is what he would otherwise receive if he were to outlive the limited term.

In this way, it is possible to Cash Out Life Insurance even it is only a term life insurance policy.

In general, term life insurance is a more affordable choice for an individual who wants to make sure household expenses will be taken care of in the event that he dies prematurely and his family loses his income.

Though it's more expensive, whole life insurance pays for final and other expenses no matter how long one lives.

With either choice, it is possible to Cash Out Life Insurance to either prevent a total loss of premiums paid or fund a more pressing financial need.


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