Both term and whole life insurance policies provide valuable protection for you and your family. However, each has very different features and is better suited for a specific situation. Know the pros and cons of each so you can get the right insurance policy for you.
Whole life insurance is a guaranteed permanent death benefit and is best used for long-term protection. Once you have been approved for your policy, your rate cannot rise. As long as you continue to make the payments on your premium when they’re due, your insurance will remain in force. Paying your premiums on time guarantees access to cash value without taxes or penalty and that your policy will not be canceled regardless of health concerns or issues that may arise in the future.
Unlike term life insurance, whole life insurance was designed to provide other living benefits like the eligibility to earn dividends to accrue additional growth of the policy value. Whole life insurance is recommended for those who desire to protect their assets.
Term life insurance is coverage at a fixed rate for a certain period of time. This type of insurance has a guaranteed death benefit within the term but does not build cash value like whole life insurance does. Once term life insurance expires, the previous rate for the premium is no longer valid. The client must decide if they will forgo coverage or apply for new coverage with different conditions and payments. Usually, term life insurance is used to replace income in the event that the insured person passes away.
Life insurance can be a delicate and overwhelming subject. You as a client want to make sure you’re getting the best coverage you can for you and your loved ones. Both term and whole life insurance provide beneficial coverage. The decision comes down to which type is best suited for you. If you’re looking to provide coverage for financial responsibilities such as consumer debt, funeral costs, dependent care for the insured or your beneficiaries, term life insurance is best for you. If you want a more long-term solution with living benefits, whole life insurance may be better. Whedbee Insurance will help you find which policy best fits you. Give us a call at (865) 584-2275 to schedule a time to talk to one of our insurance agents.