Life insurance is essential, regardless of where you are in life. Ensuring the financial security of your family and loved ones following your passing is essential. Life insurance can help provide for your family when you are no longer around. Coverage can typically be purchased in two forms, term or whole, and distinguishing the two is crucial.
What Is Term Life Insurance?
Term life insurance is a policy that lasts for a set period, often in 10-, 20- or 30-year terms. If you pass away during your coverage period, your designated beneficiary will get your death benefit.
Level term and renewable term are two common term life insurance options.
- Level term life insurance is the most common. Its premium and death benefit often remain the same throughout the coverage period.
- Renewable term life insurance is coverage that renews after a specific time, commonly one year. Coverage rates are typically adjusted based on age and other associated risks.
What Is Whole Life Insurance?
Whole life insurance is coverage designed to last for a policyholder’s entire life. Because it’s lifelong coverage, you commonly pay a consistent insurance premium. Additionally, many whole life insurance policies offer accumulation and interest benefits. Although it’s typically more expensive, whole life insurance provides policyholders peace of mind knowing their loved ones will be provided for if they pass away.
How Much Is Life Insurance?
Life insurance coverage rates tend to vary significantly among policyholders. Term life insurance is often less expensive than whole life insurance. Your insurance carrier will likely use factors such as your age and health history to determine how much to charge you for a policy. Someone older and with health risks will probably pay more for coverage than someone young and healthy.
If you live near Longview, Texas, the dedicated agents at Erick Dodge Insurance can help you learn more about term and whole life insurance to assist you in deciding on the right coverage for you and your family.
Call our agency today at 903-248-5000 for additional information.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.