If you are confused about whether to buy term or whole life insurance, don’t worry because you are not alone. Many life insurance policyholders in Duluth, GA often end switching from one option to the other. Before you settle on any life insurance package, it is essential to enquire about the difference between the two insurance policies–term and whole insurance. At Insurance Pro Group Inc., we recommend speaking to our insurance agents, who will explain the difference and benefits of both choices and help you make an informed decision.
What is term life insurance?
Just like its name, term life insurance offers coverage for a set duration or period of time, depending on the agreements with the insurance provider. This is usually between 10 and 30 years. Term life insurance does not have a cash value component. It is designed to explicitly give a death benefit to your beneficiaries in case you pass away during that duration. If you decide to buy a term life policy to protect your family, you need to think critically about the needs of the family in the period when the plan will be in force. A lot could happen before the expiry date of term insurance. This could mean having grown-up children with new needs like college fees, mortgage payments, and many other financial needs.
What is whole life insurance?
A whole life insurance policy offers coverage permanently from the time you buy to the time you die as long as you pay the premiums. This coverage gives cash value components, which means that the amount grows over time. While whole life insurance takes time to grow into a useful amount, once it gains value, you can borrow the amount in the loan forms or withdrawals.
So which option works for you? Our insurance agents at Insurance Pro Group Inc are ready to help you make a solid decision that will help safeguard your finances. Visit us at our Duluth, GA offices today!