Call Us 208-577-5577 ☰ ˟
Logo
Call Us 208-577-5577 ¡Hablamos Español!
  • Our Agency
    • AboutImage of right arrow
      • Our Locations
    • Our Team
    • Client Testimonials
    • Certificate of Insurance
    • Our Carriers
    • Client ServicesImage of right arrow
      • Get A Quote
      • Certificate of Insurance
    • Contact UsImage of right arrow
      • Headquarters
  • Products
    • Trucking InsuranceImage of right arrow
      • About
      • Why Mustard Seed?
      • Claims
      • Resources
      • Certificate of Insurance
    • Business InsuranceImage of right arrow
      • Coverage for Specific Industries
      • Coverage for Your Business
      • Coverage for Your Employees
      • Public Entity Insurance
      • Farm Insurance
    • Personal InsuranceImage of right arrow
      • Home & Auto Insurance
      • Medicare Insurance and Supplemental Insurance
      • Auto Insurance
      • Home Insurance
      • Other Personal Insurance
      • Life Insurance
      • Health Insurance
      • Recreational Vehicle Insurance
      • Additional Insurance Services
    • Wealth ManagementImage of right arrow
      • Client Login
      • Newsletters
      • Glossary
      • Tax Library
  • Contact Us
    • Headquarters
    • Our Locations
  • Careers
  • Certificate of Insurance
  • Get A Quote
Home > Blog > Getting Whole vs. Term Life Insurance
MONDAY, JANUARY 16, 2023

Getting Whole vs. Term Life Insurance

You want to support the important things in your life as best you can. The financial cushion you provide can often play an important role in your family’s security. But, what happens if you were to die suddenly? Your income would no longer be able to help your survivors.a group of people sitting at a table

In these situations, life insurance can prove a great benefit. Your policy can provide funds for your family to pay bills, settle debts or cover other costs. It’s often a good idea to enroll in coverage while you are young. Doing so will often qualify you for the lowest rates on your coverage.

Still, you have an important decision to make. There are two very common types of life insurance—term- and whole-life policies. Each policy functions differently, and might provide different benefits. How do you know which one is best for you?

Understanding Term-life Policies

Term policies don’t last forever. Usually they expire at intervals like 5, 10, 20 years and so on. One of the perks of this policy is that you won’t have to keep it forever.

Say, for example, that you only want to keep the policy until your child graduates from college. You might enroll in a term-life policy for 20 years, and then drop the coverage. Therefore, the policy will essentially cover you only while you need it. It will go away once you decide it is no longer useful.

Nevertheless, term policies have their drawbacks. To keep this coverage active, you have to renew it when the term expires, as well as pay the usual premiums. Your survivors can only claim a death benefit if you die while the term is still active. Only drop term life insurance if you consider your finances stable enough to do so.

Can You Benefit from Whole Life Coverage

If a term policy isn't what you want, consider a whole-life policy. These policies do not expire as long as you keep them paid, and often offer a few unique benefits. For example, they often accumulate cash value. Policyholders can claim this cash value, in addition to the original value of the policy. Many policyholders can even draw on the cash value as well during their own lifetimes. This is a valuable source of income that might prove useful.

Even so, whole-life policies have their drawbacks. For example, they might have higher costs than term policies. Additionally, you often have to complete a medical exam to qualify for coverage.

Therefore, when you decide to enroll in life insurance, talk to your insurance agent. They can likely help you decide on whether whole- or term-life policies better benefit you.

Posted 10:58 AM

Tags: life insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021

  • auto insurance(2)
  • farm insurance(2)
  • life insurance(1)
  • home insurance(1)
  • business insurance(1)
  • trucking insurance(1)

View Mobile Version
Contact us
208-577-5577 501 S Main Street | Meridian, ID 83642
Quick Links
Home Our Products Payment Options Report a Claim About Us Our Carriers Partners Blog Contact Us
Location
501 S Main Street
Meridian, ID 83642
Office: 208-577-5577
Toll Free: 855-558-0505
Fax: 208-939-1780



Facebook Icon LinkedIn Icon Google Icon Yelp Icon


© Copyright. All rights reserved.
Powered by Insurance Website Builder