Should you select term or whole life insurance? Consider what makes them different.
Nobody wants to consider the negative things that the future might hold. Unfortunately, that can lead some people to wait until it’s too late to protect their families financially. One way to provide for your family when you are no longer here is life insurance. Term life insurance and whole life insurance are two of the most common types, and it’s important to understand the differences between the two so that you make the right choice.
What Is Term Life Insurance?
Term life insurance, as the name implies, is designed to cover you for a set period of time. For example, your policy may cover ten or 30 years; the benefits will be paid out if you pass away during that term. However, if you outlive the length of time that you purchased your life insurance policy for, the beneficiaries will not get any benefits. Some people choose to buy for a short period of time, while others look at more extended policies that will ensure their children are financially protected if they pass away before their children turn 18.
What Is Whole Life Insurance?
Whole life insurance is generally the most popular type of permanent life insurance you can purchase, and it will cover you until you reach a certain age, like 95 or 100. Your insurance premiums will stay the same, and the policy’s cash value will continue to grow. The policy’s death benefit will be guaranteed, so you can rest assured that your expenses will be taken care of and your loved ones will be provided for when you are no longer here.
What Are the Differences?
The cost is one of the most apparent differences between term life and whole life insurance policies. Whole life insurance policies are much more expensive than term life policies, as they will cover you for virtually your entire life. Additionally, your whole life insurance policy has a cash value that will increase as you pay into it.
In general, term life insurance is a good choice if you only need coverage for a specific portion of your life. If you do not have much to spare and want the most affordable policy, term life insurance is also your best bet. However, whole life insurance provides you with much more peace of mind as long as you can afford the premium. Additionally, you can rest assured that your policy will increase in cash value.
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Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.