Having life insurance is very important as it will help to provide financial protection to your loved ones if you were to unexpectedly pass away. When you are looking for a new life insurance policy, there are a variety of options to choose from. One decision that you will have to make is to pick between term life and whole life policy. It is important to understand the differences and benefits of these two policy options to figure out which is right for you.
Whole Life Insurance
A whole life insurance policy is a life insurance policy that will provide you with coverage for your entire life if you continue to make premium payments. While whole life can provide you with insurance protection, it can also act as an investment. When you make a payment on your insurance each month, a part of your payment will go into an account that will increase in value over time. This account will slowly accumulate and can be liquidated by you at any time. While there is a financial benefit to whole life, the premiums tend to be higher.
Term Life Insurance
For many people, a term life insurance policy is a good option. With term life insurance, you will receive a defined level of insurance coverage for a specific period of time. The term of these policies will typically vary from five to twenty years in length. The cost of the policy will vary based on a variety of risk factors that you present as well as the amount of coverage that you want. This type of insurance will give you the most coverage for the lowest premium but does not accumulate any cash value.
When you are looking to learn more about your life insurance needs and options, you should meet with the team at The Sanford Group, which is a leading Ball Ground, GA area insurance provider. The team will help you better choose the right policy for your situation.