05 Apr Whole Life Insurance vs Term Life Insurance
Whole Life Insurance vs Term Life Insurance
Life insurance is an important part of your personal safety net, especially if you have people who depend on you. Life insurance will help ensure that your loved ones will be taken care of, now and in the future – especially if something should happen to you. It can also help you achieve your financial goals.
If you’ve begun shopping for life insurance, you may have seen references to “term insurance,” “whole life insurance” and “universal life insurance.” These are the two types of life insurance policies.
- Term insurance pays out a sum if the holder dies during the fixed period of the policy.
- Whole life insurance also pays a benefit on the death of the insured, but unlike term insurance, it also accumulates a cash value. In other worlds, a policy’s beneficiaries would receive a lump sum payout if the policy holder should die during the period covered by the policy. If the policy holder is still enjoying life at the end of the coverage period then that’s who will receive the payment. That’s why whole life insurance, which may also be referred to as “life assurance,” is often since as an important investment option. There’s another big difference between term insurance and whole life insurance – the payments. Whole life policies have bigger payouts than the typical term insurance policy.
- Universal life insurance offers some of the features of both term and whole life insurance. It offers the low-cost protection of term life insurance as well as the kind of savings element offered though a whole life policy.
If you’re not sure what kind of policy is best for you and your family, you can call on the experts at B&B Insurance at (561) 586-0029. We’ll be happy to discuss a personalized solution. If you prefer, or simply fill out our no-obligation Quote Form.