Life insurance is one of the most popular and cost effective ways to leave something for your loved ones after you pass away. But with all the different types of life insurance available, how do you know what is right for you and your lifestyle? There are two basic types of life insurance – whole life and term life. Some similarities and differences between the two are:
- Whole life insurance policies cover you for your whole life while term life insurance policies are only in effect for the term set at the beginning of policy inception – usually 20 or 30 years.
- Whole life policies can accrue money over time which can be borrowed by you while you are still alive.
- Term life policies do not accrue any monetary value other than their death benefit. However the premiums are usually much lower on term life policies than those of whole life insurance.
- While it is recommended to purchase a life insurance policy while you are in good health to avoid increase premium rates, both whole life and term life insurance policies can be purchased regardless of age or health standing.
- Both whole life and term life can offer lower rates for non-smokers.
Having a life insurance policy in place for your family and loved ones – whether it is whole life or term life- can help significantly after your death to keep them from financial struggles that would not have been present if you were still alive. Talk with one of our licensed life insurance agents to find what type of life insurance policy is right for you. We will determine how much insurance you would need to keep your family protected at a premium that works within your budget. Call (615) 444-3620 today for more information on both whole life and term life insurance policies.