Everything you need to know about the term and whole life insurance

When you visit an insurance company in Burlington, NC, to buy life insurance, the first thing the agents will ask you is the type of life insurance you want to buy. It’s easy to be at crossroads when you are unsure what each offers or how they work. If you are in that specific situation, here is what Don Allred Insurance wants you to know.

Term vs. whole life insurance what you need to know

You will typically have two options when it comes to life insurance. They are the oldest and most popular types of life insurance. Like any other insurance policy in Burlington, NC, life insurance can be incredibly complex when you dig deeper. So, to keep things simple and more straightforward, we are going to look at the two, their differences and their suitability.

Term life insurance

Term life insurance is one of the most comfortable and most affordable types of life insurance. Many people prefer this policy as it promises a death benefit if you pass away after purchasing it. It’s also flexible as it allows you to pay your premiums for a specific duration, and you can withdraw and use the money as you please. While the premiums are relatively low, you need to consider other aspects of the policy like larger death benefits or longer coverage duration, making it more expensive. You also need to be careful with time as term insurance has an expiry date.

Whole life insurance

Whole life insurance simply means no expiry. Your coverage never expires as long as you are paying your premiums. You pay the same rate from the very beginning, and the premiums are split between building cash value and the rest goes to the insurance component. However, it more expensive than term life insurance.

For more information about life insurance, feel free to contact Don Allred Insurance today!