Cheap Life Insurance Arkansas AR
Reader’s Question:
A life insurance agent in Arkansas called me up and discussed some types of life insurance policies available for me to purchase. As this is my first time to purchase an insurance policy, are there many types? Which one is the cheapest life insurance policy?
Emma
Little Rock, AR
Well, there can be many types depending on features, but generally there are two basic types of life insurance policy: (1) term life insurance, and (2) permanent life insurance.
The cheapest life insurance policy and the most easy to understand in Arkansas is the term life insurance. It covers a specific period of time, as opposed to a permanent life insurance policy which does not expire and can even be used to pay estate taxes.
Many advisers recommend term life insurance over permanent. Term life usually costs a fraction of permanent and is guaranteed to be constant for the whole life of the policy (ranging from 5 to 30 years). The downside of term life is that coverage expires too when the policy expires. People with term life insurance who get ill often get the risk of higher premiums upon renewal, or worse uninsurable.
On the other hand, permanent life insurance should not expire and is sometimes used as a savings tool since it accumulates cash value. It can even be surrendered after a short period of time and policy holders may get a little from their investment.
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