Term vs Whole Life Insurance
When choosing the right life insurance for you and your loved ones, the process often starts with deciding whether you'd like a term life or whole life insurance product. Here are the basic differences.
Term Life Insurance
Term Life Insurance protects a person for a specific number of years. The coverage period is known as a term. Terms generally start at 10 years and go to 30, usually increase in 5-year increments. So you typically choose 10, 15, 20, 25 or 30 years.
With most Term Life Insurance policies, the premium is fixed and will not increase the entire time that the policy is in force. This means that, if you lock in an affordable premium while you are young and in good health, you can save a significant amount of money over the life of the policy. The death benefit generally stays the same as well. So if you choose $250,000, the death benefit should or may remain the same if your beneficiaries make a claim early during the policy term or at the end of the policy's lifetime. The funds they receive will be federal income tax free, based on current tax laws.
Converting a Term Life Insurance Policy to Permanent
We offer a selection of personalized life insurance quotes all from quality life insurance companies. We offer free life insurance quotes for policies that are competitively priced and easy to apply for. Our salaried representatives are licensed term life insurance specialists who provide the straight answers and personal service you need to make informed decisions. Request a free term life insurance quote now.
A convertible term life policy can allow you to benefit from attractive rates, plus the ability to upgrade the policy to permanent coverage without another medical exam.
Whole Life Insurance
A popular type of permanent life insurance, Whole Life Insurance, provides coverage for your entire life, as long as the premiums are paid on time. Whole life insurance (and universal life insurance) can accrue cash value. The policy can build cash value that can be available as policy loans or cash surrenders, subject to policy terms and conditions.
The premiums for Whole Life Insurance stay the same, but they are typically more expensive than term life insurance premiums. Whole life insurance is potentially a sound choice if you are seeking a lifetime of protection to provide a death benefit for your loved ones with the potential to generate cash value that can be accessible to you during your lifetime.
There are many term life insurance and whole life insurance options. Would you like some help in comparing them? Our licensed professionals are ready to help.