Life insurance is valuable protection for your family. Many people question whether to buy life insurance because it is an added expense they do not feel they can accommodate. However, purchasing life insurance is one of the most important things you can do for your family, and it is more affordable than one may think. Here is an overview of two types of life insurance policies.
One type of life insurance policy is known as a term life insurance policy. Term life insurance covers the policyholder for a set amount of time. For instance, there are 10 year terms, 20 year terms and so on. They also come in many different forms, such as, no medical life insurance, burial insurance, or you can even get a term policy for mortgage protection insurance. Term policies are often the most affordable types of life insurance, but these policies do not have a cash value once the term expires.
Another common form of life insurance is called a whole life insurance policy. Whole life insurance works to protect policyholders in the same manner as term life insurance policies do. However, at the end of the policy’s term, or its maturity date, there is cash value the policyholder can access.
Whole life insurance policies cost more in premiums than term life insurance policies. They also have less coverage to them than term policies have. For many life insurance consumers, the benefit of whole life policies is that there is cash available at the maturity date. If the coverage is not needed, the biggest benefit is for a life insurance holder to realize cash value they can use any way they wish at the end of the policy’s term.
Talk with an insurance agent from GoldsmithInsurance.com or a broker to find out which type of life insurance is best for your particular situation. Life insurance is valuable and care must be taken when choosing a policy. You do not want to make such an important decision without the help of a knowledgeable professional.