Term+Life+Insurance

The basic difference between term and whole life insurance is this: A term policy is life coverage only. On the death of the insured it pays the face amount of the policy to the named beneficiary. You can buy term for periods of one year to 30 years. Whole life insurance, on the other hand, combines a term policy with an **investment component**. The investment could be in bonds and money-market instruments or stocks. The policy builds cash value that you can borrow against. With both whole life and term, you can lock in the same monthly payment over the life of the policy. Whole life insurance is expensive: You're paying not only for insurance but also for the investment portion (more taxes). Premiums for term insurance are downright cheap for people in good health up to about age 50. After that age, premiums start to get progressively more expensive. The same holds true for whole life more expensive.

Which person would want a term life insurance? A) 65 year old smoker B) 30 year old in good health C) 85 year old in good health D) 52 year old with heart problems