When deciding whether to purchase whole life or term life insurance, consider your beneficiaries’ needs as well as your financial goals. This is a very personal decision that can require a lot of thought, so it is important to know the differences between the two.
Term life insurance is purchased for a specific time period, such as 5, 10, or 15 years. It becomes more expensive after you age, especially after age 50. The term must be renewed if you want coverage to be extended beyond the term length, but it can be converted to whole life insurance. Term life insurance provides death benefits only.
Whole life insurance covers you for life, providing death benefits as well as a cash value accumulation that builds during the life of the policy. A portion of the cash value can be withdrawn or borrowed during the life of the policy. It initially has more expensive premiums than term life insurance, but may save you money over the life of the policy if it is in force for a number of years.
There are many things to consider when deciding between life insurances. Some factors can often play a role in how much your insurance costs. A few of these include:
We hope that this will give you an idea of which life insurance would be right for you. Alexander Financial Services is a top source for affordable health insurance in Greenville, NC. Our dedicated professionals can help you determine what plans and options work best for you. Contact us to find the best life insurance to fit your needs!
