18 Sep Term vs. Whole Life Insurance: Which One Suits You Best?

Life insurance is one thing that practically every adult has considered buying, and once they have a family to support, as well as things like a house and cars to pay off, they follow through with the purchase. These policies are designed to help the surviving spouse, partner, or child(ren) pay for burial costs and medical bills left behind by the deceased. A large enough life insurance policy can even provide the new widower with enough money to live on until they get their lives back in order following a fatal tragedy.

With that said, the type of life insurance chosen, whether it’s term or whole, plays a role in this as well. Let’s explore your options.

Term Life Insurance

Term life insurance is exactly as the name implies: you receive life insurance for the specific term that you selected when you signed up for the policy. This generally runs in ten-year increments, so you can have a policy for between ten and thirty years, although some insurance companies may allow for longer options.

Your age and the amount of life insurance that you choose play a significant role in how much your premiums will be. Those premiums tend to stay the same during the length of the policy. Even if you’re young, you may still have to undergo a quick physical assessment to ensure that you meet all of the insurance company’s qualifications.

The downside to term life insurance is that the policy doesn’t stay with you for the rest of your life unless you keep renewing it. If you pass away after the term is up, your loved ones won’t receive any of the money in the policy. However, obviously, if you do pass away during the term, they will.

Whole Life Insurance

Whole life insurance is a bit different than term. Unlike term, which has policies that are only good for a certain period of time, whole life insurance follows you throughout your life. The premiums are based on a number of factors, ranging from your age, overall health, and the amount of life insurance that you want. However, there is no term involved. You pay into your whole life insurance policy and there is no expiration date on the policy itself.

In addition, whole life insurance can be borrowed against. Since the policy is essentially an investment, you may be able to borrow money against the amount that you’ve paid into it and pay it back over time. This makes the policy a good backup plan for when the worst hits. It really can help you and your loved ones in more than one way.

Contact Spivey Insurance

Are you ready to order your life insurance policy? Are you wondering which is best for you, whole or term? Are you not sure how large of a policy you need? If you’re ready to find out the answers to these questions and more, contact Spivey Insurance. Our qualified and knowledgeable agents can help you make the right decision regarding the life insurance policy that’s right for you.