Although term life insurance is already less expensive than permanent life insurance policies, Term life has it own place in financial planning. Whether term life or permanent life is better depends on your situation.
Here’s when a term policy might work for you, when :
- You are looking for protection only for certain number of years
- You want lower premium and shorter commitment
- You will not have many expenses (Kid’s education, mortagage) after the end of the term
- You don’t expect to use the insurance for building cash value.
- You want a high death benefit during your high-earning years.
Here’s when a permanent life might be better:
- You want to give death benefit as a wealth to your family irrespective of the age you die.
- You want a policy with cash value that you can access into if needed for kids college fee, retirement etc
- You want to add riders to the policy like accelerated death and long-term care coverage.
- You want to use policy death benefit to pay your estate taxes
- You want to permanent policy to distribute assets between kids
What is better for NRIs?
Typically NRI families would like to save money for kid’s education, retirement and giving a legacy for next generation. Also, the cash flow of NRIs is typically good and NRIs are not aware of Insurance vehicles that are available in the USA to build cash value for medium term and long term needs.
We have been serving NRIs from many states with Life insurance solutions. As we have access to multiple companies, We are here to suggest you reputable, financially stable life insurance companies to meet your personal financial needs. There are different types of Insurance that are suitable for different needs. Term Life Insurance, Whole Life Insurance, Universal Life Insurance, Indexed Universal Life Insurance and Long Term Care Insurance are some of them. Know more about Term Insurance Vs Permanent Insurance.