Question by shaham k: What is the difference between term life insurance and cash value life insurance.?
which one is better if you are starting your own business.
also how much time you need to have to cash it out all the money from the term life insurance. Moreover, what are the advantages and disadvantages of both of these options?
Best answer:
Answer by Nathiya
The insurance which is covered though life is term life insurance . This insurance is done though small amount. Depending on the age of the person the policy premiums will range. If you have the short time goals you can buy it for larger premium. As in the term insurance the benefits are paid to your family after your death. If the policy holder lives for longer time than the policy is active the amount will not be got to the both hands neither the policy holder or the family in term life insurance.
Cash Value life insurance:Cash value life insurance is that which is be benefited to your family after the death of yours. It also have the benefit to the policy holder. He can have some cash value during his living period itself. This policy is a life time policy. You can either withdraw some amount from the policy or you can get a loan from the policy. So this type of insurance is beneficial to both the policy holders and beneficiaries. No income tax is been caught when the amount is paid to your beneficiaries. See the site to clear more about financial solutions. http://www.financialiteracy.com
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