Life insurance is an important safeguard, but which of the two main policy types is right for you — term life or whole life? Though each is designed to provide peace of mind, the policies work in different ways. The experienced agents at Randolph County Farm Bureau serving Randleman and Asheboro, NC, wants to help customers understand their options. Here, they explain the differences between term life and whole life coverage and the benefits of each.
Term Life Insurance
Term life coverage protects the insured for a set number of years. Most people purchase policies that last between 10 and 30 years. After the term ends, policyholders must either renew their plan to retain coverage or secure a new policy. Because these policies have an expiration, they’re often more affordable and are ideal as a first policy for younger individuals just beginning their families. This allows you to focus coverage on the period when your family depends on your income most.
Whole Life Insurance
Whole life policies have no expiration and accrue interest on the funds you pay in each month. This payment amount is fixed, so the earlier you purchase a policy, the more affordable coverage will be. Premium costs are based on your health at the time you purchase coverage, so it’s best to secure this type of policy when you are healthy to lock in the best rate. Keep in mind premiums may be slightly higher than those associated with term life policies.
Ready to purchase a life insurance policy? Speak with an insurance agent at Randolph County Farm Bureau to discuss your unique needs. They understand no two individuals or families are alike and will work to find the best insurance policy for your situation. Learn more about their services by visiting their website and call (336) 629-9187 for their Asheboro location and (336) 822-9573 for their Randleman office.