What should I choose term insurance or cash value life insurance?
Term life insurance pays out in the event of death. On the other hand, cash value, which is more costly, has a cash amount you can withdraw before death. When making your decision, first ask yourself how much life insurance you should buy. Then look at the financial aspect and ask what type of policy you should buy. The amount of life insurance you need may be so large that the only way you can afford it is by buying term insurance, which carries a lower premium than cash value policies. If you can afford the desired amount of life insurance under either type of policy, you can consider factors such as your income tax bracket, whether the need for life insurance is short-term or long-term (20 years or longer is long-term), and the rate of return on alternative investments. If you view life insurance as an investment, you should study rates of returns. If it’s protection, then your purchase is a matter of what you can afford and want to spend. How does mortgage protection term insurance
