Need help sorting out the life insurance conundrum? Here at Ed Jones, we’ve heard every question—and want to be sure that you have all the answers you need.
Today, we’ll be tackling a common question many people have: what’s the difference between term and whole life insurance, and which one is right for me?
Take a look below and we’ll get started!
Term life insurance
As its name might suggest, term life insurance is meant to serve your family for a set “term” of time following your death. That period of time can vary, but it should ideally be enough to provide for your family during critical periods of time (whether you’ve just had a baby or are sending your child off to college, these milestones can be expensive!).
Because term life insurance is less expensive initially, you are paying for the security of a sort of income for your family when they need it the most—however, you are not paying into something that will have a cash value later on. That benefit comes with whole life insurance, which we’ll discuss a little later on.
Are you wondering if term life insurance is right for you? It might be, especially if...
- You are growing your family.
- You recently bought a new home.
- You’re sending a child to college.
Whole life insurance
Whole life insurance is all about permanence. You can relax knowing that your premiums will stay the same for the entire time that you pay them, and the death benefit does not have a term limit (as it does in the case of term life insurance).
Whole life insurance might be more expensive initially, but in this case, you are able to borrow against the money you’ve paid even while you are still living. This is an attractive option for those who may use that cash value to pay for buying a home or sending a child to college, for example.
As you can see, there are benefits to each kind of life insurance depending on your unique situation. If you have more questions, our office is more than happy to help you sort through them. Call us today to get started on the life insurance process!
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