Life insurance provides long-term protection and peace of mind for you and your family. This form of insurance is available in two main types: whole and term life insurance. This guide compares and contrasts the two so that you’re informed when meeting with an insurance company representative to talk over the specifics. 

What Are the Types of Life Insurance?

What Is Term Life Insurance?

Term life insurance plans provide you with coverage for a set amount of time. Normally it’s a 20 to 30 year period, and if you or your spouse were to pass away during that time, the insurance company would pay benefits to your beneficiaries. 

Term life insurance plans are usually affordable because the plan has no value unless you or your spouse passes away. It’s worth investigating even if you’re young. At 20 or 30, many people haven’t had the chance to accumulate assets to leave behind for family members. Term life insurance policies provide comfort since you know that there’s a safety net for your loved ones if something were to happen to you. 

What Is Whole Life Insurance?

Whole life insurance, also known as cash value insurance, is a comprehensive option that covers your entire lifespan. Whole life insurance is often structured like an investment account so that you can earn money on the cash that you pay into the policy. Because of this setup, whole life insurance usually costs more than term insurance. 

Although this insurance costs more, some people like its simplicity. The premium paid to the insurance company remains the same over time and the death benefit is guaranteed. There’s even the option to borrow against your life insurance account for other financial needs, but it’s crucial to pay back this loan so that you don’t risk losing part or all of your death benefit in the future. 

How Can You Choose the Best Type for Your Needs?

Generally, young people who are making an income and have debt, such as a mortgage, will choose term insurance so that they’re protected during a specific period. However, some people like knowing that they have the complete protection of whole insurance, along with the investment benefits that it provides. 

When picking life insurance, it’s important to meet with an agent to discuss your needs and concerns. They can tailor a whole or term plan that’s best for your situation and review all the costs and policies of each product with you. 

Somers Agency provides insurance coverage for all of your life, home, business, and auto needs. They’ve served Lorain County, OH, since 1898 and their knowledgeable agents are happy to assist you with your insurance requests. Speak to a representative at (440) 324-3447 or request a quote for life insurance online.