There are a lot of options to sort through when it comes to choosing an insurance policy. To make sure that you find the policy that is the best fit for you, let’s start by looking at the basics. The two main types of life insurance policies are term and whole life insurance. Here are a few key differences between them, and reasons that either policy may work for you.
Term Life Insurance
A term life insurance policy is so-named because it is designed to provide coverage for a set portion of time. This term is usually a block of ten to twenty years. What a term life insurance policy usually covers are the costs of your funeral as well as loss of income and mortgage payments that will affect your surviving family. The benefit of term life insurance is that it is less expensive than whole life insurance. However, the coverage is only valid if you happen to pass away within the window of time that the term life insurance covers. If you choose a term life insurance policy then you can go into further discussion with the insurance agency about what kind of coverage you would like and for what period of time.
Whole Life Insurance
Also called permanent life insurance, a whole life insurance policy will provide coverage for you and your beneficiaries. Although it is more expensive than term life insurance, there is no worry about your coverage expiring. With a whole life insurance policy, you will have coverage during and after your life that will increase in value over time. In many cases, you can even borrow against or cash out portions of your whole life insurance policy as needed. A whole life insurance policy is highly recommended for anyone over fifty years old, especially for those who have children or grandchildren. Even younger adults can consider starting with term life insurance and converting it into a whole life insurance policy later.
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,Twitter, and Pinterest.