The duration of coverage is the most significant difference between term and whole life insurance. Typically, term life insurance means an individual is covered for a certain period of time until the term is up and he or she either extends the policy or lets it end. This is in contrast to whole life insurance, which as its name implies covers an individual during the entire duration of life once the initial premium is paid. One similarity between the two is each can be obtained with one payment when investing in single premium whole or single premium term life insurance.
There are many benefits behind purchasing a Single Premium Term Life Insurance policy. Because an individual is only covering a certain period of time instead of an entire lifespan, the cost of term life insurance is usually lower. This means the single premium paid is also lower than the one paid for whole life insurance. Other benefits of this policy including an opportunity to renew the policy as needed and the potential to convert the policy into cash for other investments. Additionally, beneficiaries receive the claim without additional income taxes
Buy paying a single premium for each term, it is easy and cost-effective to establish financial security. Take time to consider the several Single Premium Term Life Insurance options with different year duration’s.