How costly is the permanent full term life insurance policy FTLIP compared to the term life insurance?
Depending on the issuer, purchasing a permanent full term life insurance policy or whole life insurance equivalent would have significantly higher premiums, possibly $200 (PHP 10,000) to $300 (PHP 15,000) and above per month.
On the other hand, most term life insurance policies expire without paying a death benefit… That lowers the overall risk to the insurer compared to a permanent life policy of a full term life insurance policy FTLIP.
Table of Contents
4 Paramount Contrast between Term Life Insurance and Whole Life Insurance
1. the cost
2. the catch up
3. the expiry date
4. the monetary value
| Term Life Insurance | Whole Life Insurance or Full Term Life Insurance Policy |
| 1. A much cheaper option 2. Easier to understand | 1. Much more expensive 2. Typically more challenging to fully grasps |
| 3. Policy expires after a set term. 4. No cash value component | 3.Policy stays in full force throughout the lifetime of the policy holder 4.Cash value component makes a whole life a potential investment |
The 2 broad categories of life insurance are permanent and term. Permanent full term life insurance policy furnish coverage for your entire duration of life– of course this has to be integrally paid in full and always on time with no elapses. Term life insurance on the other hand, provides coverage for a specific term like 10 years or 30 years.
Full term life insurance policy FTLIP is a kind of a life insurance that pays you a tax-free lump-sum of monetary cash to the beneficiaries of the policy holder if they die within the specific period like 10 years or 30 years. After the plan expires, the policy holder can either renew or convert the insurance policy.
5 Categories of a Term Life Insurance Policy
1.Guaranteed Level Term Life Insurance
The guaranteed level term life insurance is the most known category of the term life insurance. It has certain restrictions and limitations by the annual premium that do not rise and escalate during the life duration of the policy. However, it has an expiry date. Level term life insurance policy usually last 10 years, 20 years or even 30 years, but the premiums is higher each year for the considerable full length longer policies.
2. Annual Renewable Term Life Insurance
This annual renewable term life insurance is a short term life insurance policy that is renewable annually within a restricted length of time. The drawback is upon each renewal of the policy every year, the premiums will keep dramatically ascending enormously also.
3. Return of Premium Term Life Insurance
This return of premium term life insurance category has a distinguishable quality specified in a legal manner that guarantees to reimburse or refund the life insurance premium during the time the term period ends provided the policy holder is still alive. these usually falls within the range of 15 years, 20 years or 30 years. Much costly than the typical term life insurance policy TLIP. And much expensive than a whole life insurance policy and has similar disadvantages.
4. Decreasing Term Life Insurance
The decreasing term life insurance category is designed to pay a low claim on the policy ages. Primarily the death benefit policy reduces throughout the period of the plan. This is intended for individuals who have currently higher financial obligations over time such as mortgage or education.
5. Modified Term Life Insurance
This modified term life insurance category employs the alternative payment arrangement to a standard life insurance plan but provides the same protection. The policy may either have a decreasing or an increasing term life insurance plan, depending on your insurance needs and insurance specifications.
What are the pros and cons of full term life insurance policy FTLIP?
Unlike the whole life and universal life, which last your entire lifetime, term life insurance lasts as long as you need it to. This makes it significantly more affordable and a popular choice. Term life insurance only covers you for a set time, resulting in a lower rate than other life insurance policies.
What is the best term life insurance policy?
Level term life insurance is the best option for most people because it offers straightforward, affordable coverage. The insurance coverage amount stays the same throughout the policy’s term, and the death benefit matches what you pay for.
Proverbs 30:24-25
“Four things on earth are small. yet they are extremely wise: Ants are creatures of little strength, yet they store up their food in the summer.
Don Moen Motivational Song
Don Moen – Thank You Lord | Live Worship Sessions – YouTube
