CAN SOME PLEASE THE DIFF. BETWEEN TERM LIFE INSURANCE OR REGULAR LIFE.?

There are two types of life insurance: Term and Permanent. Term is temporary insurance and permanent is Whole Life or Universal Life. Term Insurance is only for the period of time you're insured - 10 years, 20 years or 30 years. Whole Life and Universal Life are for your whole life.

The advantages of Term insurance is in your younger years you can get a large face amount for a very low cost. The disadvantages of Term insurance is when your term period is up and when need it most in your later years, the cost is extremely high and unaffordable. At that point the policyholder cancels the Term. Another disadvantage of Term insurance is the risk you may become uninsurable due to health issues such as diabetes, heart problems, cancer or a number of things that will cause an insurance company to decline renewing your policy.

The disadvantages of Whole Life or Universal Life insurance are the initial cost is higher than Term. The advantages of Whole or Universal Life are: the initial cost is fixed, it's permanent coverage whether you become uninsurable or not (as long as your premiums are paid), it builds cash that you can either withdraw or borrow, you don't pay taxes on the money taken out of the policy (as long as the policy stays in force), it's a forced savings you otherwise would not have put away for yourself. Another advantage is the fixed cost is far less than Term in the later years, the time when you need life insurance the most. The best time to purchase Whole or Universal Life is in the younger years.

Purchasing life insurance is a personal matter. No particular type of insurance fits all. Everyone has a different family situation requiring the proper financial plan. I'm a California licensed agent for 10 years. You may e-mail me with questions at mob442ins@yahoo.com.

I'm not sure what you mean by "regular life", but maybe this brief explanation of life insurance will help you understand how each type work.

There's 2 types of life insurance. The first type is life insurance that builds cash value. They provide coverage up to the around the age of 100 and your premiums may or may not be the same every month. There's different names for this type of life insurance and they are called whole life, universal life, or variable universal life.

But here's what life insurance agents won't tell you about this type:

1) It is very expensive to own. An average 30 year old will pay $1000/year for just $100,000 coverage.

2) The savings get a low rate of return. In the first 10 years, your savings grows at a negative rate because in the first 2 years, no cash value is accumulated. If you have the policy 20 years or longer, the average rate you will get is anywhere between 1-4%.

3) If you want to take money out, you have to borrow it and pay loan interest between 5-8%. If you die while there's a loan balance on the policy, this balance will be deducted from the face amount of the policy.

4) If you were to die someday, the savings in the policy goes directly to the insurance company. You can choose to include the savings with the death benefit at the time you fill out the application, but this will cost you more money.

The 2nd type of life insurance doesn't build savings and its known as pure insurance. This type is called "term insurance." Term insurance provides the most amount of coverage for the less amount of premiums for a specific period of time. It basically fills a temporary need where your savings is so low and your debt is so high and you have young kids that are dependent on your income. An average 30 year old will pay $240/year for $100,000 coverage for a 20 year term. Thats about $63/month in savings. If you invest the $63/month in mutual funds for the next 20 years, at a 8% return, you will have about $37,355. I'm being conservative with the 8% b/c I seen mutual funds that has average rate of 12% in the past 30 years. If you do get 12% return, in 20 years you will have about $62,946.

It may seem not much, but I guarantee you that its way better than buying a life insurance policy that builds savings. There's 2 problems in life. You either die too soon or live too long. If you die during the term, your beneficiary will get the death benefit and whoever you name to receive your savings and the rest of your assets will get that. If you die after the term, whoever you name to receive your savings will get that savings.

Considering the difference between the 2 types of life insurance, doesn't term insurance makes more sense to have? After all you have complete control of your savings instead of letting the insurance company manage it for you. When you have control of your savings, there's no such thing as borrowing your own money. In 20 or 30 years, you don't know your financial situation, but you better have savings built up.

Hope that helps. By the way, I own a 20 year term policy with $250,000 coverage. I bought it when I was 23 years old and pay $22/month for it. I also invest $400/month into my Roth IRA. You may want to have similar game plan in place if you ever want to retire with lots of money while at the same time, protecting your income with life insurance.

Term Life Insurance is insurance in case you die and that's it.

Other types of life insurance earn savings. It's a big rip off. Take the term life insurance. It's cheap and you get more insurance for your dollar.

Go to Yahoo Finance, click on "Personal Finance" and read the life insurance section.

The primary purpose of life insurance is to protect those who depend on you financially by replacing your lost income. If you are only concerned with burial expenses, you can purchase prepaid funeral plans.

term insurance - a plan in which premiums are low, and your family gets money only if you die. ( lumpsum)

regular insurance - a plan which make sure your family gets money as a pension if you were to die, and some amount as lump sum, also if you were to live longer than expected, you will get pension.

Make sure you get a "level term policy" because not all term is good term either.