Life Insurance is one of the most important types of insurance you can have. It is the insurance that can protect your family’s future in the event of your death. One of the biggest questions we get is which type of life insurance is best, Term-Life, Whole-Life, or Universal Life Insurance. For Life Insurance month, we wanted to break down the differences between the three so you can make an informed decision one which is best for you and your family.
Term Life Insurance
Term life insurance is one of the most popular and is usually recommended for people with young children, do not have debt high debt, and plan to have a savings to cover expenses. Term Life insurance is a policy that covers you for a certain term such as 20 years. Most people will get this policy when their children are young to cover their funeral expenses, home, debt, and any bills for a set amount of time to allow their children’s and spouse’s (if applicable) lives to continue without financial hardship. With this policy, you will pay a monthly premium for the term of the policy. The policy will pay out only if you pass during the term period.
Whole Life Insurance
Whole Life insurance does not have a set period when the policy ends like term life insurance. You will still pay regular premium payments until you pass away. Once you pass away, your policy will pay out. One difference is that you may have the option to take a lump sum back while you are still alive. Keep in mind that this may reduce the amount that is paid out when you pass away.
Universal Life Insurance
Universal Life insurance and Whole Life insurance are very similar. The major difference between the two is the ability to take out money early while still living with a universal life insurance policy. You sometimes do have the ability to borrow money against your policy and pay it back over time. This will have an effect on the amount that is paid out at your death if the loan is still outstanding though.
How much will I pay?
Premiums of any life insurance policies depend on age, medical history, as well as how much your payout would be. We will be happy to walk you through each type and which we think is best for you and your family.
One of our biggest recommendations with life insurance is to JUST HAVE LIFE INSURANCE.
Check out our Life Insurance Interactive Infographic if you would like more information and how life insurance will protect your family in different scenarios.
If you would like to get a quote, you can do so by going to our website or giving our office a call at 770-720-1314 or emailing us at info@providenceprotects.com. Already a client, you can request a quote directly through your Glovebox app!
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