In the life insurance universe, there are some basic distinctions to be had. The first, and perhaps most basic, distinction is between term life insurance and permanent or whole life insurance. Term insurance is essentially life insurance that is good for a pre-determined term or span of time. Whole or permanent life insurance is valid for the entire lifespan of the policy holder, provided the premiums are paid.

Term life insurance, as opposed to whole life insurance, does not build up a cash value over time. This means that while you cannot borrow money from the life insurance policy, you are also not paying into anything other than pure coverage. This translates to a term life insurance quote that is much more affordable than a quote for a whole life insurance policy.

While some may balk at the idea of buying term insurance, at American Life Insurance, we believe that there are a number of great reasons for obtaining a term insurance policy. In short, a term life insurance quote will likely be much lower than quotes for other types of policies. This makes term insurance ideal for newer families who may not have excess disposable income. Additionally, term insurance can provide coverage for a financially precarious span of time.

For example, families that have either one or more children going to college can make good use of a term insurance policy. College can be extremely expensive, and should one of the wage-earning parents pass away, tuition may move from being simply expensive to being cost-prohibitive. A term policy that covers the college years can give an added sense of security and ensure that should you pass on while your children are in college, they will still receive the education that you want for them.