When it’s time to choose a new life insurance policy, you’re bound to have many questions. One of the most common questions to ask is “what’s the difference between a term life insurance and a whole life insurance policy?” Let’s find out.
How Term Life Insurance Works
Term life insurance covers you for a set period of years, for instance, 10, 15, or 20. You can choose the length of the term. If you don’t need coverage for the rest of your life, then this is the option to select as it is less expensive than its counterpart. Sometimes, you’ll be able to change this policy into more permanent coverage. However, it will only pay out benefits if something should happen, and you pass away while the terms of the policy are active.
How Term Life Insurance is Helpful
Defray funeral costs: Planning a funeral can be incredibly expensive. Spending several thousand dollars to make all of the arrangements can be a burden, but term life insurance policies can help ease that burden.
Protect your income: The term policy can also help make up for loss of income. This type of income protection can cover necessities such as rent, utility payments, groceries, and childcare expenses.
Pay your mortgage: A term life insurance policy can also help your surviving family members make timely mortgage payments and allow them to keep the house they live in now.
Plan for your kids: Life insurance plans for your children, purchased when they are still young, can protect them even once they are grown.
How Whole Life Insurance Works
Whole life insurance is also known as permanent life insurance. Once active, it protects you, your family, and your beneficiaries. It gains value over time, and the premiums and coverage won’t change during the time they apply to you (i.e., your life).
How Whole Life Insurance is Helpful
Younger adults in their 30s and 40s could benefit from mixing and matching elements of term life insurance and whole life insurance. However, for adults in their 50s and older, a whole life insurance policy is much more useful. This policy can help you support college-age children, young adult children, or your parents who still need your care.
Get in Touch with Wachter Insurance
Whether you need homeowners’ insurance or auto insurance, our team at Wachter Insurance Agency, Inc. is here to help. We offer our clients competitive rates, professional customer service, and a wide range of policies to choose from for your needs. We have been serving Maryland, West Virginia, Virginia, Pennsylvania, and the District of Columbia since 1969 and we would love to help keep your home and family safe every day of the year. For more information, call us at (301) 371-6335 or visit us online. For more blogs like these, follow us on Facebook, Google+, Twitter, and Pinterest.