When it comes to keeping you and your family insured, many do not know what type of life insurance is best for them. There are many differences in term life insurance and whole life insurance, the question is, which one is better for your situation? Brazelton Insurance goes in depth about each type, as well as how it accommodates your needs.
Term Life Insurance:
Term life insurance plans only last for a certain period of time, whether it be 5 years or 20 years. These policies only will cover your death benefits if it were to occur during the specific amount of time. For example, if you purchased a term life insurance plan at 40 years of age for 10 years. If death occurred at age 60 and you did not renew your policy, your beneficiaries will not receive any of the death benefits. However, term life insurance is a beneficial plan for those with limited incomes who cannot afford more coverage.
Whole Life Insurance:
Whole life insurance plans entitle the customer to protection for their whole life. From the start of the insurance plan, to the day the insured policyholder passes, they will be covered. In addition, the beneficiaries will be provided the death benefits, only if the individual has been keeping up to date on paying their premiums.
Another benefit to whole life insurance is the offering of cash surrender value. This value increases annually and cannot be reversed once initiated. The policyholder may borrow or surrender the plan for the cash value it is worth, as well as stop paying premiums and exchange the plan for a term life insurance plan.
Based on your situation, it may be difficult to pick which insurance plan is the best for you. Brazelton Insurance Group is here to help you pick the most appropriate insurance policy for your situation, contact us today for a free consultation.