If you’re the main provider for your household, you’ve probably considered purchasing life insurance at some point. You may think that life insurance is a straightforward business, but many become frustrated and confused when trying to choose between the different types of life insurance. If you’re located in Palm Beach County and have been searching the web for “life insurance agents near me,” look no further than Absolute Best Insurance!
The Different Types Of Life Insurance
When weighing your options for life insurance, there are two types of policies to consider: term life insurance and whole life insurance. If you’re looking for coverage just for a certain amount of time, go with term life insurance. But, if you want coverage for the rest of your days, choose whole life insurance.
These two types of policies differ greatly when it comes to several important factors, including:
- Annual premium costs
- Length of coverage
- Whether or not the policy accumulates cash value
While some people are more comfortable with the security of a whole life insurance policy, others want the more flexible options that come with term life insurance. The best choice for you depends on your particular circumstances.
About Each Type of Policy
If you’re not sure which policy you should choose, you’re not alone. Many people scour the internet for “life insurance agents near me” daily, trying to find someone who can explain the difference. The following information may be helpful if you don’t know what exactly to look for.
Term life insurance coverage does not last forever. When you purchase your policy, you’ll choose the time period you want coverage for, usually between 20-30 years. If you were to pass away during this time, beneficiaries would receive a predetermined payout amount. People who choose this type of policy usually do so because of the much lower annual premiums, which allows them to invest more money into other ventures.
Whole life insurance, on the other hand, covers you for your entire life, regardless of how long you live. While the premiums are more expensive, the policy is designed to build cash value over time. You can even take out loans against your insurance policy, as long as you repay it with interest.
Which Should I Choose?
There is no one-size-fits-all life insurance policy. The right type for you depends heavily on your personal situation. If you’re still unsure which to go with, consider the following.
You might want to choose term life insurance if:
- You only need to replace your income for a certain period of time (i.e. while your children are young).
- You don’t want to commit to whole life insurance yet, as most policies will let you convert within a certain timeframe.
- You want more affordable annual premiums to invest your money elsewhere.
But if any of these factors apply to you, you may be better off with whole life insurance:
- You want to give your beneficiaries some extra money to pay inheritance taxes.
- You want to be able to freely spend your retirement savings without worrying about providing for your heirs.
- You have a dependent who will need financial assistance throughout their entire life, such as a disabled child.
Understanding the types of life insurance can be tricky. If you live in Palm Beach County and have been searching online for “life insurance agents near me,” contact Absolute Best Insurance today. We work with 70+ experienced, helpful agents who can guide you towards the right coverage for you and your family.