Term life vs. whole life insurance

Term life vs. whole life insurance

When discussing your life insurance options with your life insurance specialist at Myers & Hayden Insurance, you’ll have a few selections to choose from. The most popular options are narrowed down to term and whole life. While each of them has their pros and cons, it all comes down to which one better serves you. Here, we’ll break down the components of the two.

Term Life Insurance

Term life insurance is the most cost-effective option in the short term. Term life insurance tends to be the preferred choice because it is cost-effective and simple. Your premium is determined by your age, sex, and health. With this type of insurance, you will receive coverage for a set amount of time, usually for 10, 20 or 30 years. In many cases, premiums will increase with each new term and when your specified term ends, you may be presented with the option to convert to whole life.

Term life insurance is not permanent and comes with no cash value. However, if you should tragically pass away within the specified time frame, your beneficiaries will receive a “death benefit.”

Whole Life Insurance

The beauty of whole life insurance is that it covers you for the duration of your entire life. Though you will pay a much higher premium in comparison with term life, the peace of mind will be well worth Whole life insurance offers you peace of mind. it. In addition, your premium will never change.

One added benefit of this option is that there is a cash value component, which allows you to put money away over the course of your lifetime. Not only will it prove beneficial in the long run, but it will also continue to grow at a guaranteed rate. With these absolutions in place, you’ll feel secure knowing that you’re covered for life and you’ll have savings available for future use.  Whole life insurance can be the most cost-effective option in the long term.

Conclusion

When the time comes to purchase a life insurance policy, either one of these options would make a wonderful choice. If you’re looking for the most cost-effective and appropriate option, many customers find satisfaction with term life insurance. However, if you’d like something that is stress-free with a life-long guarantee, whole life insurance is the right solution for you.

Deciding on the right insurance plan depends on what best suits your lifestyle and budget. No matter what the choice, something is better than nothing! It could mean the difference between security after death or leaving your loved ones in crippling debt! We encourage you to make an informed decision and select what’s ideal for you. For residents of Fort Wayne, Indiana looking for life insurance to protect their loved ones, call the life insurance specialists at Myers & Hayden Insurance at 260-486-5255 to discuss your needs.  We look forward to assisting you with this important decision.