It’s not easy to understand the different types of life insurance. In order to help you learn more about your insurance options, we’ve compiled some key factors about whole and term life insurance. For more details and answers to all of your questions, give us a call today at 888-876-8170!
Term Life Insurance
- Term life insurance covers individuals for a specific time period.
- These policies pay death benefits to the decedent’s designated benefactors for a limited period of time beyond the date of his death. These payments typically last between 10 and 20 years on average, though time frames will differ by each individual policy.
- Term life insurance monthly premiums usually stay the same during the course of the policy. However after a certain time, it is possible for monthly premiums to fluctuate.
- Typically, term life insurance is ideal for an individual who is the family’s “bread winner”. Bread winners should consider taking out a term life insurance policy during the prime of his or her working years, so that family members are provided for no matter what.
- Term life insurance is usually less expensive than permanent life insurance policies such as whole life insurance. Whole Life Insurance
Whole life insurance offers the opportunity for a cash value, which can be utilized to save money while taxes are deferred.
- Whole life insurance policies have strict coverage amounts and monthly premiums that can’t be altered during the course of the policy. Although the insured party and his potential benefactors are locked into the initial terms of the whole life insurance policy, it does provide the guaranteed safety net of lifetime benefits in the event of the insured’s death.
- Whole life insurance policies are typically more expensive than term policies.
- These policies come with the ability to build equity over time.
To learn more about term vs. whole life insurance, contact one of our knowledgeable agents today! Or, visit our website for a free quote.