Life insurance sounds simple but it is a complex process with many terms. Two of these terms include Term and Whole life insurance. Both of these are types of life insurance you can get, and both have benefits and drawbacks depending on which you choose.
Term life insurance is a term of several years, normally anywhere from 5-30 years. If you die during that term, then it provides death benefits for your family. It is affordable term life insurance if you get it early, but also grows more expensive the older you get, and you need to renew the term if you want it to continue.
Whole life insurance covers you your whole life and provides death benefits as well as accumulated cash that grows alongside the policy. You’ll need to take a medical exam to qualify, but once you do the cash starts to build up. It could be borrowed from if you need some extra money but is typically cash set aside for your family and your own death and funeral expenses.
Which one to choose depends mostly on you and where you are in life right now. Your age, current state of your health, your family’s needs, and your future needs are just some of the factors you will need to figure out before picking life insurance. It’s a lot of questions to ask and things to figure out, and you might want to speak to a professional about which term is right for you.
Picking a life insurance plan alone might seem like a daunting task, but you can talk to insurance professionals to figure out what makes the most sense, as well as what could help out your family members. It’s a big decision, so don’t be afraid to take the time to get it right.