Term and Whole Life Insurance
Life insurance covers the financial needs of your loved ones if something unfortunate should happen to you. Obtaining life insurance is one of the most important things you can do to create financial security for your dependents. Two of the most common types of coverage you may have are term and whole life insurance policies. Both have several benefits, but they are intended for different purposes. Understanding the fundamental distinctions between these two main types of policies is essential whether you seek the most suitable insurance option based on your needs.
Term insurance is usually the most cost-effective type of life insurance that protects for a specified period. Typically, most insurance companies offer coverage plans between 5 to 30 years.
It’s crucial to remember that term insurance does not build up cash value over time and that the coverage will end when the policy’s term expires. Therefore, your beneficiaries will receive a death benefit only if you pass away while the insurance is still in effect.
Unlike term insurance, whole life insurance provides coverage for the policyholder’s entire life. Because of its lifetime coverage, permanent life insurance is often more expensive than term insurance. But due to its versatile and flexible form, it offers a range of advantages such as death benefit, premium stability, cash value accumulation, tax-deferred growth, the potential for dividends, and estate planning.
When it comes to life insurance, there are many different options available. That’s why choosing the right policy for your needs can be complex. But we are here to help you navigate this overwhelming consideration and application process. As our brokers always keep your top priorities and budget in mind. We will work with you to calculate how much life insurance you need to protect your family and help you decide which type of policy is best for you.
Contact our insurance broker at Baker Consulting today if you are interested in learning more about your life insurance options or need our assistance navigating various health insurance plans and travel insurance options.