Term x Permanent life insurance
定期 x 永久人壽保險
There are two basic life insurance options: term and permanent. Term lasts for a specific, pre-set period. Permanent lasts your entire lifetime.
But with so many diverse opinions and points of view, it can become very difficult to parse what kind is the most beneficial for your situation. With this article, we hope to aid you to make an informed decision.
Term Life insurance: Definition
Term insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions. Term insurance generally offers the largest insurance protection for your premium dollar.
There are two basic types of term life insurance policies level term and decreasing term. Level term means that the death benefit stays the same throughout the duration of the policy.
Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policy's term.
Term Life insurance: Advantages and Disadvantages
Advantages of Term Life Insurance include the lower price point, its simplicity, and flexibility since it can be canceled with ease, unlike permanent life insurance, besides the fact that you can acquire it for a specific period that fits your needs, such as a mortgage.
Disadvantages include a lack of built-up cash value - only providing a death benefit, the uncertainty of acquiring future life insurance if you need it - such as in advanced ages - which result in only about 1% of Term Life Insurance Policies ending in a death claim.
缺點包括缺乏累積現金價值 - 僅提供身故賠償，如果您需要購買不確定未來人壽保險獲得人壽保險- 例如在年老的時候 - 只有約 1% 的定期人壽保險保單以死亡索賠。
Permanent Life Insurance: Definition
Permanent life insurance goes by several names, such as universal life, variable universal life, and whole life. Permanent insurance provides long-term financial protection. These policies include both a death benefit and, in some cases, cash savings. Because of the savings element, premiums tend to be higher.
Whole life/permanent insurance pays a death benefit whenever you die even if you live to 100 years old! There are three major types of whole life or permanent life insurance traditional whole life, universal life, and variable universal life.
Permanent Life insurance: Advantages and Disadvantages
Advantages of Permanent Life Insurance include Its permanency - which lasts for your whole life, as long as you keep up with the premiums, your premiums and your death benefits remain the same, tax breaks - since the cash value in a whole life insurance policy is tax-deferred and you can borrow against the cash value of your policy after a certain point, which would be useful in an emergency.
永久人壽保險的優點包括它的永久性 - 只要您按時交保費，您的保費和死亡撫卹金保持不變，稅收減免 - 因為終身人壽保險單的現金價值是延稅的，您可以在某個時間點後以保單的現金價值借款，在緊急情況下對您很有幫助。
Disadvantages include the higher cost, a smaller death benefit than term life insurance, and a lack of control over your investments.
Source 文章來源: insurance.ca.gov