What is the Difference Between Term Life and Whole Life Insurance?
Your life insurance policy will be one of the most important pieces of coverage you invest in as it can have substantial effects on you and your family, so choosing the right option is crucial. People are often confused about the difference between term life and whole life insurance, and while they are both great options, the one you choose ultimately depends on your finances and your beneficiaries.
Term Life Insurance
Term life earns its name from the fact that it comes in options of varying lengths of time, or terms, for which you can take out a policy. These terms are typically between 15, 20, and 30 years. Over the course of the term, you pay premiums into the policy depending on how much coverage you chose. If you were to die during the term, then your beneficiaries will receive the death benefit. Ideally, you want your death benefit to cover funeral costs as well as any other bills you may leave behind, and the payout can range between $100,000 and $400,000. If you survive the duration of your term, you receive all or some of the premiums that you paid into the policy.
Whole Life Insurance
As the name implies, a whole life insurance policy will cover you for the entirety of your life, which means that no matter what happens, your beneficiaries will receive your death benefit. Instead of paying installments as you would with a term life policy, you would instead pay a larger lump sum premium and have a smaller payout. With a term life policy, many are comforted by knowing that after the term they can get their premiums back, which is why whole life policies are best for the elderly who will not need to worry about their finances if they do not get the premiums back.
The Best Coverage for You
Understanding the various insurance policies can be tricky at first, but at Keys Insurance, we will work with you to ensure that your needs are properly met and guarantee the perfect insurance policy for you and your family. For more information, call us at 305-743-0494 and receive your quote today.