The seguros de vida initially started off as a temporary policies valid only for one year. To remain protected by insurance one had to buy a fresh policy every year. This kind of arrangement had two major disadvantages:

– As the policy prices will increase with age, after a few year the policy will be costly. To take care of an advantage like this the level term life policies were introduced.

– If the insured person develops any kind of illness that the insurance company will refuse to provide coverage. So it simply means that though you paid for insurance all the years you will have to die uninsured. So this policy was introduced with renewal clauses.

The level term life insurance is noting but the plain term life insurance instead of the one year policies they are sold for 5/10/15/20/25/30 years. For this policy the premium is the same for the entire policy and so it is advised to buy the policy when you are young is sensible. See that the policy covers you entire life. If you have to buy a fresh coverage later in life but your premium rates will be high.

Buying a term life is cheap if you determine how long you will be taking the policy for. This is the reason why many prefer the insurance whole policy. The death benefit of this policy is payable whenever the insurer dies as this policy covers the whole life of the insurer. Another good part of this is that if you create a cash reserve to which interest will be regularly credited along with the usually death benefit.

Now, the question is, are they as much beneficial as they are made out to be. Experts are still arguing about it. The proponents of term life believe that nobody requires the coverage for life so the life long validity is not at an issue. As for the cash value buildup, you have such opportunities only because you are paying extra for that.

Nonetheless, as far as market demand goes, the whole life policies far outweigh term life in their popularity. However, the seguros de vida whole,is not the only policy which provides life long coverage along with scope for cash value build up; a universal life insurance too do that. In fact, the later is often perceived as an improvement upon the whole life policies because it offers more flexibility in premium payment; if you cannot pay the premium, the policy will simply subtract the amount from the cash reserve. Moreover, the death benefits too can be altered easily under a universal life while that is fixed under a whole life.

There can be a defraud side to this as well. In the whole life insurance the death benefit is guaranteed as long as every premium is paid on time. However the in the universal life policy there is a risk for maintaining the death benefit of the policyholder. A policy can lapse of the market goes down or if there if the fund managers fails to do their job, well this will lead you to losing every penny you saved.

However, some companies offer ‘No Lapse Guarantee\” riders and if you buy them along with the original policy, it will remain in force for the guarantee period even if the cash value drops to zero. In all, many people prefer seguros de vida universal, because the policy is not only more transparent, but under this policy the internal rate of return is much higher. Consequently, although it is illegal to do so, many brokers as well as agents advertize it as tax-advantaged financial vehicle. Some even promote them as an alternative to Roth IRA and other tools.

The seguros de vida as an industry is on a path of development. Time changes and so does the financial requirement of the society or tan individual. The insurer have to keep themselves always updated and as a result of this we have different types of policies for the different needs of different people. So, if you want to spend your money the right way, go through each and every policy carefully and then choose one that suits you best. If you want you can get a broker and get to know every detail of each policy.

Article by David Livingston of EQuote, who\’s a specialist in everything relating to life insurance. If you are interested in getting more information about whole insurance or simply would like to learn more about affordable no exam term life insurance rates, you should visit his site today as there are a lot of information that you will find useful.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information, visit his site at http://www.equote.com/life-insurance/universal-vs-term-insurance/.

Author Bio: Article by David Livingston of EQuote, who\’s a specialist in everything relating to life insurance. If you are interested in getting more information about whole insurance or simply would like to learn more about affordable no exam term life insurance rates, you should visit his site today as there are a lot of information that you will find useful.

Category: Finances
Keywords: insurance whole, seguros de vida , universal life insurance , seguros de vida universal