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When planning for your family's financial future, buying life insurance is an important step. However, deciding which type of policy is most suitable for your situation can be challenging. While both term and whole life insurance will help protect your loved ones, they have different features and benefits that should be carefully considered.

Term Life Insurance

The most straightforward and affordable life insurance option is term life insurance. This will provide coverage for a set period—typically 10, 20, or 30 years. Should you pass away while the policy is still active, your beneficiaries will receive the death benefits. If you're still alive when the term is up, you can convert to a whole life policy.

Whole Life Insurance

insuranceWhole life insurance is meant to cover you for your entire life. As long as the premiums are paid, it'll pay a death benefit to your beneficiaries whenever you pass away. Another important distinguishing characteristic is whole life policies build up cash value over time. The earnings are tax-deferred and can be borrowed or withdrawn to help pay for expenses that arise.

Which Is Better?

The kind of life insurance you choose will depend on your specific circumstances and financial objectives. Typically, a term policy is better for someone who's on a budget and wants coverage to help in temporary situations, such as while their children are still in school or there's a mortgage that needs to be paid. Whole life policies generally make more sense if you want coverage with a savings plan, a locked-in premium rate, and a guaranteed death benefit for your loved ones.

 

If you’re looking for life insurance coverage your family can rely on after you pass away, turn to Chanler Agency, Inc. Insurance for help exploring your options. Since 1973, they’ve been committed to providing residents throughout the Finger Lake Region of New York with quality products at competitive prices. They’ll assess your unique needs and goals before making a recommendation on the type of policy that’s best for you. To request a quote, call their Geneseo location at (585) 243-5520 or the Livonia office at (585) 346-3118. You can also visit them online to see the wide variety of carriers they partner with.

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