Term life insurance vs. permanent life insurance you ask? Which is the right life insurance for you? We will take a look quick look to highlight the key differences between term life insurance and permanent life insurance.
Many people don’t consider life insurance a priority. Others find it challenging to understand the different types of life insurance. Some are unsure if they are being “sold” because of the stigma attached to high life insurance commissions payouts. In fact, lots of Americans have no life insurance at all.
This is understandable, as this can be a confusing topic. And even for some people who do have life insurance, they’ve often chosen a policy that seems fine enough (but they don’t fully understand what it covers).
Want to make sure you’re protecting your family but not sure where to start? Here’s a quick look at a few of the best type of life insurance options for you right now:
Term Life Insurance
This policy requires you pay a fixed premium for a set amount of time, usually anywhere between 10 and 30 years. Your beneficiaries (such as your spouse and children) would receive a payout if you were to pass away while the policy is in effect.
Whole Life Insurance
A permanent life insurance option scheduled to last you until you take that last breath. It typically has a higher premium than term life, but it builds cash value over time — a portion of which you can borrow, if necessary. This is relatively an insurance and savings strategy for wealthy families.
There is some flexibility in the plan. For example, if you decide you no longer need life insurance, you can surrender the whole life policy and receive its cash surrender value. If you change your mind later, you’ll have to apply for a new policy and re-qualify for coverage..
Universal Life Insurance
Another permanent life insurance policy that lasts your entire life as well, but with the added freedom to adjust your premium payments. This means you can raise or lower your premium to increase or decrease the speed with which your policy accumulates value. As with whole life insurance, you can also borrow part of the policy’s cash value.
Have you chosen life insurance that works for you? If one of your resolutions is to ensure that your loved ones are provided for, reach out to discuss your options today.