Life insurance provides enrollees with peace of mind, knowing that their loved ones will be financially protected after their death. Yet, once you've decided to invest in a plan, you need to choose between the two main styles—term and whole life. Both options offer advantages, so making a selection is often based on personal circumstances and preferences. Here's a more in-depth look at each option.

Term Life Insurance

The most distinguishing characteristic of term life coverage is the policy length. Typically, plans are available covering a span of 10 to 30 years. Once it reaches the end of the term, the policy expires. Yet, if you pass away before that time, the full payout is provided to your beneficiaries. As a result, many individuals choose a term that matches their circumstances, such as until their mortgage is paid off or their children reach adulthood.

A top advantage of time life insurance is the cost. Since there's no guarantee that you'll end up utilizing the coverage before the term is up, insurance companies charge substantially less for coverage.

Whole Life Insurance

Whole life insurance, on the other hand, offers protection for the full duration of your life. The permanent coverage goes into effect soon after signing up and lasts until death or policy cancelation. This arrangement ensures protection for your loved ones without ever worrying about expiration.

While whole life coverage is usually associated with higher premiums, it also comes with financial benefits. As the policy ages, most providers allow you to take out a loan against the growing cash value of the plan. As long as you repay the loan, there's no negative impact on the policy. Additionally, many companies also allow policyholders to cash out the plan after a certain number of years, though it will cause you to lose your coverage.
 

Get personalized assistance when choosing a life insurance policy by turning to Brent Layton at Farmers Insurance Group in Tremonton, UT. Boasting over 25 years of experience, this agent works one-on-one with clients across Box Elder County to find the coverage that matches their unique needs. Request a policy quote online today or by calling (435) 257-3829. Email any questions you have directly to the agent at bclayton@citilink.net.