Both loans and withdrawals will reduce the cash value and death benefit. Loans are subject to interest charges. Provides life insurance coverage for a specific period of time. To continue coverage after the specified term has elapsed, you will need to reapply for a new insurance policy. At that time, the insurance company will again consider your health when determining whether to grant you the insurance.
Premiums are generally less expensive than for permanent life insurance over a short time span.
However, the cumulative costs of renewing term insurance can eventually cost you more than the cumulative cost of purchasing permanent life insurance only one time. There are several types of permanent insurance. We'll list the three basic types and review the features of each. Whole life, also called ordinary life, is traditional life insurance. Universal life, sometimes called adjustable life, offers more flexibility than traditional whole life insurance.