Term Life Insurance Alabama AL

June 15, 2008 by visitor · Leave a Comment
Filed under: Buy Alabama life insurance 

Reader’s Question:

I have currently moved to Alabama and am planning to apply for a life insurance. How does term life insurance differ from cash value life insurance in Alabama?

Mark

Birmingham, AL

Thank you for asking Mark.

Term life insurance is a type of insurance policy that provides death benefits without any savings, investment or “cash value” components for the term of coverage. It is usually the cheapest and the simplest to understand. Normally, premiums of this type are guaranteed not to increase for a given set period of time. The company cannot cancel you as long as you pay the premium.

On the other hand, cash value life insurance is another type which offer or require “cash value” accounts with a return-on-investment component aside from death benefits. “Cash value” accounts maybe in a form of a long-term savings account (though without insurance by any federal agency) or stock market investment. Expect to pay much higher premiums per $1,000 of coverage because of the funding for a cash value in addition to the assumption of death costs.

It would be much better if you contact a local life insurance agent in Alabama to know more information about life insurance in Alabama.

Tags:

Comments are closed.