Life Insurance Leads Albuquerque New Mexico NM
Reader’s Question:
I am from Albuquerque New Mexico NM. Our first child is on the way and at this point, my wife and I feel we need life insurance, just in case. Can anyone clarify differences between term and permanent life insurance?
Alice
Albuquerque, NM
It must be exciting around your house right now in Albuquerque, NM.
Term life and permanent life have one major similarity which is because of the benefits they serve to the beneficiary or beneficiaries.
Both term and permanent life insurance allow the owner to select the recipient of tax-free proceeds as a death benefit. In fact, there can be many types of permanent life insurance. Mind you that these plans not only provide a death benefit but they often serve as investment products. There might be some significant tax savings for these plans, but term life insurance has no investment features. The owner purchases a set amount of insurance for a renewable period of time and usually, the premiums are paid monthly.
Term life insurance is also available in an annual-renewable policy from your local insurer in Albuquerque, NM. With this type of life insurance, the owner can renew after one year but does not have to have a new medical examination.
Many young candidates nowadays would prefer this type of term life insurance policy. It is because substantial value can be purchased at very reasonable rates with an automatically renewable aspect which can be a terrific feature. Your term policy can generally be converted to permanent insurance, if you decide so.
Remember that as your family grows in Albuquerque, NM, their dependency on you increases. This is therefore a good time to be considering either a permanent or term life insurance policy for a growing family.
Tags: life insurance, life insurance leads, term life insurance, term policy
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