Life Insurance

Back to the Drawing Board: A Lesson in Life Insurance

When considering what life insurance is best for you and your loves ones, you’ll come across two main types of life insurance … Term life insurance and permanent life.

In order to determine what is best for you, let’s take a closer look at the features and facts of each type of life insurance policy.

Term Life: Convenience and Affordability

Traditional term life insurance is straightforward, basic and easy to understand. It’s good for a specific period of time – typically 10 or 20 years. If you die during the term, your beneficiary collects a sum of money (death benefit) from your life insurance policy. If you die after the term ends, there is no payout.

Term policies generally cost less to purchase upfront, offering individuals higher coverage at a more affordable price. That makes term life insurance the most coverage for the lowest cost.

Most term insurance can be renewed at the end of the term, but the premium will likely increase. Many term policies give policyholders the option of converting to a permanent life plan without having to reapply or take a medical exam.

Who Buys Term?

People who benefit from term insurance are those who may need it to cover expenses, such as a mortgage, car, student or business loans. Others use term insurance to ensure that dependent family members are covered after the loss of their salary. Term is also beneficial for those who do not want to commit to higher premiums payments that often come with a permanent policy.

Whole Life: Lifelong Protection

Whole life insurance, also known as permanent life, pays a fixed amount at your death and builds cash value along the way. This cash value builds tax-deferred from investments made by the insurance company. You can borrow against it without being taxed.

Who Buys Whole Life?

Whole Life is your best bet if you are looking for lifelong protection. With the ability to qualify and stay qualified for a life insurance policy, you won’t have to worry about not having life insurance in the future when you may need it most.

Which is for Me?

Sometimes the best solution isn’t one of the other. It could be a combination of both term and permanent life protection. To learn more about all the life insurance options available to you, visit us online or call 800-655-6836 ex 9571. A licensed agent can help you determine which company and policy will best meet your needs. This informative consultation comes at no charge and is pressure-free with no obligation.

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