It is safe to say that term life insurance makes up for a large majority of life insurance policies in the United States today.
This is because these types of policies offer the largest amount of coverage for the least amount of money.
The biggest problem with a term policy is that it does not build up cash value that you can cash in on before your death or borrow against like with whole or universal life insurance.
The biggest reason why most people choose to go with a term based policy is that you can literally get a ton of coverage for mere pennies on the dollar.
In order to start building a cash value on your term policy is to take what you are saving from going with a term based policy.
So lets say you save $75 per month by going with a term based policy instead of a whole or universal type policy.
You would take these savings every month and put it into an annuity.
At the end of the policy term (usually 10-30 years) you will have a large lump sum of money that you can collect and add to your overall worth.
Basically an annuity is a contract or agreement between you and your insurance company, where you will pay them a series of payments.
These payments are invested and your insurer will agrees to make periodic payments back to you at a future date.
Annuities usually offer tax- deferred growth of earnings and can even include a death benefit that will pay your beneficiary a certain amount.
By doing this you will be able to get a good amount of coverage for pennies on the dollar, while still building up a good sum of cash for later on down the road.
This is because these types of policies offer the largest amount of coverage for the least amount of money.
The biggest problem with a term policy is that it does not build up cash value that you can cash in on before your death or borrow against like with whole or universal life insurance.
The biggest reason why most people choose to go with a term based policy is that you can literally get a ton of coverage for mere pennies on the dollar.
In order to start building a cash value on your term policy is to take what you are saving from going with a term based policy.
So lets say you save $75 per month by going with a term based policy instead of a whole or universal type policy.
You would take these savings every month and put it into an annuity.
At the end of the policy term (usually 10-30 years) you will have a large lump sum of money that you can collect and add to your overall worth.
Basically an annuity is a contract or agreement between you and your insurance company, where you will pay them a series of payments.
These payments are invested and your insurer will agrees to make periodic payments back to you at a future date.
Annuities usually offer tax- deferred growth of earnings and can even include a death benefit that will pay your beneficiary a certain amount.
By doing this you will be able to get a good amount of coverage for pennies on the dollar, while still building up a good sum of cash for later on down the road.
Source...