When you’re in the market for life insurance, you typically have two primary choices: term life or whole life. Both pay a death benefit to your survivors, but they are very distinct and are appropriate for different situations. Here’s what you need to know so you can make an informed decision. 

What Is Term Life Insurance?

Term life is the less expensive of the two. It’s a temporary policy that only lasts for a certain number of years. The term can be 5, 10, 20 or 30 years, or another length based on your needs. If you die while the policy is in effect, your beneficiaries receive the death benefit you paid for. Monthly premiums are typically low, and do not rise during the term. However, once the policy expires, you’ll pay more each month if you wish to renew it because you will be older. Term life is an ideal solution if you’re concerned about costs and need protection for a limited time — for instance, until your children grow up and become independent or until your mortgage is paid off.

What Is Whole Life Insurance?

Whole life is permanent insurance. It lasts until you die or until you stop making payments. It can be more difficult to obtain, because you may have to commit to a health screening. It also costs more per month, because it contains an investment arm; part of your premium goes into a retirement account from which you can withdraw funds while you’re still alive. Some policies even offer long- or short-term disability coverage. Premiums remain the same for the rest of your life.

Whichever type you buy, the sooner you purchase life insurance, the less you’ll pay for it. Premium amounts increase as you get older because you’re riskier to insure. 

To discuss your life insurance options, contact one of the agents at A Better Choice Insurance Agency in Concord, NC. They’ve been helping individuals and businesses throughout Cabarrus County design the right policies for more than 25 years. In addition to life insurance, they also specialize in auto, home, motorcycle, and business policies. Visit their website to learn more about these options or call (704) 782-2073 to request a quote today.