What Are the Most Common Cash Benefit Choices For Term Life Insurance? You work difficult to support your family and give them the type of lifestyle within your budget. But you can not afford to overlook the most crucial decision you possibly can make in order that all your family members wont be left having to stop trying the life they are used to when you are not there to deliver it on their behalf. You might hear about widows that follow close behind their late spouses simply because they cannot live without them. This may sound romantic, but it is an unfortunate commentary with a grim reality in lots of cases. In life insurance there were two options to pick from the term life insurance coverage and permanent term life insurance. In term life insurance indemnity, a life coverage in the specified years in return of specified premium. It is the cheapest assurance. It is a pure indemnity with no cash value involve. While permanent life assurance is insured until after policy and it has a cash value. Expensive but protected until the end from the policy. You may need to use caution when your beneficiary is under special help from the us government program for example supplemental security read more income (SSI) and Medicaid. Without a proper planning, the proceeds may result the rewards to become forfeited. Your beloved heir may have to use the proceeds to finance his basic needs until these are depleted, then merely the special government program may resume. Whole life insurance is really a permanent policy which you keep before you die (the whole life). The rates are made to stay the same (your monthly premium payment) and also the benefits (death benefit amount that is certainly settled and also the cash value) is guaranteed. This type of policy accumulates what is known as "cash value" which can be roughly 2% of the amount that you just pay in premiums month after month that accumulates after a while. This accumulates as being a cash amount which can be borrowed like a loan. The life insurance policy may be used as collateral for a cash loan, however, not exactly an intelligent idea as it will probably be deducted through the death benefit when the policy is paid. I sell insurance to individuals inside their 60s and even 70s. At that point the best selection for the kids is really a whole life policy that doesnt even pay dividends. The premiums are steep and also the death benefits are usually 5, 10 or 15 thousand dollars. Also, as of this age they will often not even qualify. Guarantee issue coverage as seen on TV, crap! Need I say more?