When securing your family’s financial future, few investments are as important as a life insurance policy. However, with a plethora of options available, choosing the right one can be a daunting task. To make an informed decision, it’s crucial to understand the types of life insurance policies and their suitability for your unique circumstances.
What Is Whole Life Insurance?
Whole life insurance is designed to last the policyholder’s lifetime and may pay out regardless of when the person dies. It generally will not expire unless the policyholder stops making payments. Whole life insurance can also have a cash value component that increases based on contributions from the policyholder’s premium. Once enough cash is built up, the policyholder can borrow against the account or surrender the policy for cash.
Who Needs Whole Life Insurance?
Whole life insurance may be a good option if you meet any of the following criteria:
- You can afford higher premiums.
- You want to leave money to your heirs or other beneficiaries.
- You have a lifelong dependent, such as a child with disabilities.
- You want life insurance that builds guaranteed cash value.
What Is Term Life Insurance?
Term life insurance is only for a fixed period, commonly 10, 20 or 30 years. Term life insurance will only pay out if the policyholder dies during the term. If they outlive the term and the coverage ends, their beneficiaries will not receive any money. When the policy reaches its term, the policyholder must reapply for a new policy if they want coverage to continue.
Who Needs Term Life Insurance?
Term life insurance may be a good option if you meet any of the following criteria:
- You want life insurance to cover you only for a specific period of time.
- You have a limited budget.
- You think you might want permanent life insurance but can’t afford it right now.
- You don’t want to use life insurance as an investment.
Life Insurance Quote in Zelienople, PA
Choosing the right life insurance policy requires carefully evaluating your financial goals, budget and risk tolerance. Each type of policy has its strengths and weaknesses, and what’s right for one person may not be ideal for another. Contact Jack L. Bonus Insurance Inc. to discuss your life insurance options. We can help you decide on a policy based on your situation and financial goals.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.