When it comes to planning for the unpredictable, life insurance can provide the reassurance you need that your family will be taken care of. Whether it’s personal debts like mortgage payments or coverage for funeral costs, a life insurance policy can provide much needed support to alleviate future financial burdens. Before you select the type of coverage you want, learn more about the differences between term and whole life insurance.

What Is Term Life Insurance?

Term life insurance is one of the most common options and likely the one you are most familiar with. A term policy provides coverage for a fixed period of time, most commonly 10, 20, or 30 years. With this type of insurance, if you die within the period of your policy coverage, your dependents will receive the payout to help pay off any debts you have and to handle the costs of your funeral.

This type of policy is designed to be simple and make it easy for you to provide the protection your loved ones need. Many opt for this coverage because the rates are typically lower, and if you live past the terms, your children will be older, and most other personal debts will be much lower or paid off, making the need for it less pressing.

What Is Whole Life Insurance?

For individuals looking for more comprehensive coverage, whole life insurance may be the better option. These policies provide lifelong coverage and can be invested in a tax-deferred account. With this type of policy, you can also borrow money against the account, offering you a safety net if you have any financial stumbles prior to your death.

While these policies are slightly more complex and can require extended payouts, the guaranteed death benefit grows in cash value at a guaranteed rate, as well. For more extensive benefits and coverage, a whole life policy may be ideal for your situation.

If you are concerned about protecting your loved ones in the event of premature death, talk about your life insurance options with the team at Kramer-Myers & Werring-Dickerson Insurance in Batavia, OH. For more than 60 years, these professionals have provided the policies individuals and businesses need to protect their assets. To learn more about your options, visit them online or call 513-732-1461.