Home > Insurance Blog > Term or Whole Life: Which Life Insurance Policy is Best?
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Buying life insurance can be confusing. After searching online, you will be inundated with endless email offers and ads on social media. To choose the right type of life insurance, it is worth understanding the basics, so you purchase a policy that best suits you, your family, and your financial situation.
You have two main options in purchasing life insurance: term and whole life. These two types of policies are quite different. Let’s cover the basics:
Term life insurance is the most affordable and often the best choice for younger people, as the price is calculated based on age and health. Many term policies do not require a medical examination. These policies remain in force for a set number of years, up to 30. You have two choices in term life insurance, level term and decreasing term. In level term life insurance, no matter what age you die, the death benefit is paid in full. In decreasing term insurance, the longer you live, the less is paid out in a death benefit. In most cases, level term insurance is the right choice.
Term life insurance policies offer several important benefits:
Whole life insurance is a “permanent” policy. As long as you keep your premiums paid, the insurance company is legally obligated by contract to pay your beneficiaries (the person or persons you name) the death benefit, no matter when you pass away. These life insurance policies are more expensive, require a medical examination, and do not expire, even if you live a long life. A whole life insurance policy has a cash value and allows you to borrow against them if needed.
We advise you to get help from an experienced life insurance agent, rather than buying online. We work to find the best insurance to match your needs and have access to the best policies, both term and whole life. Let us help!
Filed Under: Life Insurance | Tagged With: Voluntary Term Life Insurance, Voluntary Permanent Life Insurance