Life insurance is a crucial investment that allows you to take care of your loved ones after you’re gone, but choosing the right policy can be a little intimidating. Insurers offer a broad range of options, but all of those policies fall into two basic categories: term and whole life. Below is a breakdown of these two essential types of life insurance and what the differences might mean for your family.

Term vs. Whole Life Insurance

What Is Term Life Coverage?

Term life policies are time-limited, which means they’ll pay benefits if the holder passes away within a specified period. The term of the policy varies, usually between 10 and 25 years, depending on your needs and financial situation. At the expiration of the term, you may either let the policy go or renew it, which may lead to a premium increase.

Because the rates for term life insurance are typically lower than other policies, they’re popular for those who need coverage for a specific need, like putting your children through college.

Understanding Whole Life Coverage

Unlike term coverage, whole life policies never expire and will pay death benefits no matter when you pass away. Although their premiums may be somewhat higher, these policies include a savings component, allowing you to withdraw cash or borrow against the value of the money you’ve paid. Many whole life policies invest part of your monthly premiums in stocks or bonds, so the value of your coverage may actually grow over time.

Choosing a life insurance policy can be a daunting task, but the professionals at Seeman Holtz specialize in simplifying the process. With offices nationwide and a steadfast dedication to their clients’ needs, their agents go to the extra mile, proactively providing valuable service and priceless peace of mind in all areas of your life. Visit their website now to find your nearest location, follow their Facebook for more advice, or call (800) 991-3592 now to request a quote.