Choosing the right life insurance policy can seem like a daunting task. Whole life insurance and term life insurance each provide distinct advantages that are important to understand before choosing a policy.
The life insurance experts at Raymond Longoria Insurance in Mission, Texas, are ready to help you understand your life insurance options. Contact us today to get a personalized life insurance quote.
What Is Term Life Insurance?
Term life insurance is a simple policy designed to provide a death benefit if the insured person dies during the policy’s term. Depending on your needs, you may choose a life insurance term of 1, 5, 10, 15 or 20 years.
Term life insurance is popular because it’s simple and typically much less expensive than other types of life insurance. So long as premiums are paid on time, the policy remains in force until the insured person dies or the term is up, whichever comes first.
What Is Whole Life Insurance?
Whole life insurance is a permanent type of coverage that remains in force so long as the insured person is alive and premiums are paid as agreed. A whole life policy includes a life insurance component and a savings component.
Whole life insurance pays a set death benefit when the insured person dies. The policy’s cash value builds over time, depending on the policy type. The policy owner may be able to borrow against the value of the policy.
If the life insurance coverage is no longer needed or the policy owner wants to stop making premium payments, they may be able to cash out the policy and receive a lump sum payment minus fees. Cashing out a whole life insurance policy terminates coverage.
Whole life insurance is more complex than term life insurance and provides additional benefits. Premiums for whole life insurance are typically much higher than for term life insurance.
Why Buy Life Insurance?
Many people purchase life insurance to support the policy’s beneficiaries financially. Death benefits are not taxable and can be used for any reason. Life insurance can also be used as part of an investment plan, depending on the policy you choose.
Your agent can help you evaluate your life insurance options and choose a policy that fits your financial goals.
Contact Raymond Longoria Insurance today to get a life insurance policy to meet your individual needs.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.