Where Do I Start?

The world of life insurance can seem both simple and complicated at the same time. The simple part is knowing that you want to be covered at the time of death. Seems simple right? For some types of plans it is that simple. For other types it isn’t that simple. When describing term life insurance, the word “term” is short for terminating; its meant to end at a particular point. Some term policies automatically renew for one year periods, but with each renewal comes a dramatic price increase. Even if people can afford the price increases, term policies automatically cancel at a certain age. This is not ideal for covering the cost of a funeral. The vast majority of people will not pass away while a term policy is in force. Only about 1% of term policies result in a claim, which is the main reason why those policies are so cheap. Whole life, on the other hand, does not terminate so long as people continue to pay their premiums. There are also no price increases with whole life; the price you start with is the price you keep.