Whole Life and Term Life Insurance Policies: What You Need to Know
Whole life and term life insurance policies are the two main types consumers can purchase. These two kinds of life insurance each have their own advantages and disadvantages. Each has benefits that make them popular as ways to protect loved ones after the policyholder’s death. These two policy types function very differently from each other. However, each pays a death benefit to beneficiaries upon the policyholder’s death. This is essential in preventing loved ones from facing financial hardship. Contact us at Adams Insurance & Financial in Northwest Arkansas to get started with a life insurance policy.
Whole Life Policies
A whole-life policy is one that has no expiration date and can be kept for as long as you want. This type of insurance is popular because you can maintain it even as you enter your elderly years. While obtaining a new policy at this age would be difficult, with a whole-life policy, you continue paying for it. A whole life policy doesn’t expire like a term life policy does. Moreover, whole-life policies also accumulate a cash value over time that you can borrow against if needed.
Term Life Policies
Term life policies come with a set expiration date after a specific number of years. The policy remains effective for the specific term of years chosen. After that, the policy expires, and you’re no longer covered. This type of policy doesn’t accumulate any cash value like whole-life policies do. However, due to its significantly lower cost, this type of policy is quite popular. It’s affordable for many people who need a policy on a budget.
Securing Your Life Insurance
Regardless of the type of policy you want, life insurance is vital. To get started, call Adams Insurance & Financial in Northwest Arkansas.
