• First Africa Life • Term Life vs Cash value
Term Life vs Cash Value
Cash value life insurance is a type of permanent life insurance that includes a savings component that grows tax-free over time and can be borrowed against or withdrawn later in life. Whole life insurance is an example of cash value life insurance.
Term Life Insurance features
-
Term life insurance is straightforward, providing coverage for a specific period without the complexity of a cash value component. This makes it easier to understand and manage.
On the other hand, term life insurance is a type of life insurance that lasts for a specific number of years and does not accrue any cash value. It is straightforward insurance without a savings or investing component. Term life insurance is generally more affordable than cash value life insurance.
Cash Value features
-
Cash value life insurance policies can be more complex and challenging to understand than term life insurance, due to the cash value element and various features such as loans, withdrawals, and potential dividends.
