Life Insurance – To Buy or Not to Buy – That is the Question
We hear and see many advertisements about life insurance and why it is important to include it in our future plans. Both term and whole life insurance are options, but understanding the pros and cons of life insurance can help us make the right decision.
Term Life Insurance
One way to consider term insurance is as a short-term option for ensuring your beneficiaries will receive a payout if you pass away while the policy is in effect.
Term life insurance policies are for a specific period, which is typically between 10 and 30 years. During this time, the initial amount you pay for the premium remains the same, so there is no worry about continual premium rate increases.
The downside is that if you pass away after the term ends, your beneficiaries will not receive a payout. To avoid this, apply for a new policy. While this is a positive option for helping secure your beneficiaries’ future, premiums are more expensive because of your increased age.
Whole Life Insurance
As the name implies, whole life insurance provides life-long coverage. It is considered permanent with no rate increase. Part of your premium payment is set aside, so you are assured of a payout to your beneficiaries. Also, the money set aside serves as an asset you can access, if needed, during your lifetime.
The downside to whole life insurance is it is typically more expensive than term life policies.
Contact Us
Serving Collierville, TN residents, the Brock and Poole Insurance Agency agents can help you determine which life insurance is most beneficial for you. Contact us and let us help secure your future and your beneficiaries with the right life insurance policy.
