Life Insurance: Term vs. Whole Insurance

Purchasing life insurance can be an unfamiliar process as well as a major financial decision. 

Two of the biggest questions are what the best insurance is and whether to buy term life insurance or whole life insurance. Well, here we’ll give you the pros and cons of each type of insurance.

 

To begin with, you must consider your financial goals and the needs of your beneficiaries. If you are not clear on this, don’t worry; one of the best things about life insurance is that it’s highly flexible, and you can change it according to your needs.

Getting down to business, the main difference between term and whole life insurance is the duration of the coverage it provides. Costs can vary because of factors such as age, whether you are a smoker or nonsmoker, and the policy’s face value.

So… Is whole life insurance the best option for you? Let’s see.

 

Whole Life Insurance Pros:

1. First and foremost, whole life insurance gives you life coverage, as the name implies.
2. You will have access to part of the premium you paid. Once you’ve built up a specific amount of value, you can apply for a loan or a line of credit.
3. It allows you to have estate planning in case you have many high-value assets to pass on to your heirs.

 

Whole Life Insurance Cons:

1. For the first years, you will have a higher monthly premium than you would with a term insurance policy.
2. Whole-life policies can be confusing regarding cash value, policy loans, and policy withdrawals.

 

Now, is term life insurance the best option for you? Let’s see that too.

 

Term Life Insurance Pros:

1. Term-life policies have more affordable premiums compared to whole-life policies.
2. You have the option to match the terms and amount of your mortgage loan with the term and coverage of your life insurance.

 

Term Life Insurance Cons:

1. As the name implies, the policy covers you only for a specific time. As your age and health advance, the costs of your policy will also rise.
2. If your policy expires, your benefits and those of your heirs also expire.

 

Now that you know more about the pros and cons of the different life insurance policies, you have better insight into how to make a decision.

However, before making any decision you must consult a life insurance expert who can review your life circumstances and help you decide the best option for you and your family. The good news is that that expert can be found here at Top Insured Agency!

 

It is easier than it seems to be. Simply contact us, fill out an application form and we’ll take care of the rest for you.

Call us today to be a Top Insured!