Life Insurance and term Life Insurance are both types of insurance policies that provide financial protection to individuals and their families. However, there are some key differences between the two:
Life Insurance: Life Insurance is a type of insurance policy that provides coverage for the entire lifetime of the insured individual. It pays out a death benefit to the beneficiaries upon the death of the insured. Life Insurance policies can be further classified into different types, such as whole life insurance, universal life insurance, and variable life insurance. These policies often have a cash value component that can grow over time and be accessed by the policyholder.
Term Life Insurance: Term Life Insurance, on the other hand, provides coverage for a specific term or period of time, typically ranging from 10 to 30 years. If the insured individual dies within the term of the policy, the beneficiaries receive a death benefit. However, if the insured individual outlives the term of the policy, there is no payout. Term Life Insurance policies do not have a cash value component and are generally more affordable than Life Insurance policies.
In summary, the main difference between Life Insurance and term Life Insurance is the duration of coverage and the presence of a cash value component. Life Insurance provides coverage for the entire lifetime of the insured and may have a cash value component, while term Life Insurance provides coverage for a specific term and does not have a cash value component. It's important to consider your financial needs and goals when deciding which type of insurance policy is right for you.