Whole and Term Life Insurance Basics
Life insurance is one of the most important insurance policies available since it provides financial protection for your loved ones after you are gone. Unfortunately, it is also one of the most overlooked insurance policies. Many people do not invest in life insurance simply because they do not understand the different policies that are available. Keep these life insurance facts in mind to ensure that you choose the right life insurance policy for your loved ones.
The two most common types of life insurance are term life and whole life insurance. A term life insurance policy only provides coverage for a specified amount of time, typically up to 30 years. If you pass away during the life of the policy, your beneficiaries will receive the death benefit. However, if you outlive the policy, nobody will collect the death benefit. Term life insurance policies tend to have much lower premiums than whole life policies and can be renewed if you want to extend your coverage beyond what the original policy was.
A whole life insurance policy will provide coverage for your entire life, no matter if you pass away this year or live to be 100. With a whole life insurance policy, your beneficiaries will receive the death benefit. Whole life insurance policies have more expensive premiums and you typically have to get a health examination before you can invest in a policy. One of the major benefits of a whole life policy is that the policy accumulates a cash value, which you can borrow from through the life of the policy.
For all of your life insurance questions and to ensure that you invest in the right policy for your specific needs, contact the insurance professionals at Jack Stone Insurance Agency Inc.