While there are multiple classifications of life insurance that exist, the two that stand out are term life insurance and whole life insurance. Understanding the differences between these options makes the process of purchasing life insurance all the easier.
How much you’ll spend.
Whole life insurance has much higher premiums. The main reason for this discrepancy is whole life portions money to a “savings” account. While this may be appropriate for someone with enough income to purchase whole life, it does not work for everyone.
Term life insurance is simply insurance that offers a death benefit to a beneficiary upon the policyholder’s death. This is how term life remains inexpensive and easy to understand. Many who invest in a term life insurance policy decide to create a separate savings account like a 401(k), or and IRA.
How long it lasts.
Whole life insurance lasts for as long as you’d guess: your whole life–another reason for it’s higher premiums. You can also take access the savings account, should the need arise. Or, after a certain amount of time, you can cancel the insurance and the company will pay you the balance in the savings account.
Term life insurance typically lasts from 10 to 35 years. This makes it the most efficient choice as a safeguard against loss to family income. Once a policy comes to a close, it is important to evaluate the coverage needs at that time. If life insurance is needed, they can usually convert their term life plan into a whole life plan or apply for another term life plan.
So, now the question is: do you want to protect your family’s hopes and dreams?
We will provide you the most overall benefits for the lowest monthly cost. Plus, it only takes a few minutes. Fill out the form below. On the resulting discovery page, give us your contact info, and we’ll let you know. It’s really that easy.