Looking for a new life insurance plan? Then you’ve come to the right place. We can help you get a great plan at an affordable rate. But before we do that, we want to provide some valuable advice on what you should look for in a policy and how to get the best rates. First off, you need to decide if you want Term Life or Whole Life. These are the two most common forms of life insurance.
Term Life Basics: When you purchase Term Life insurance, you are getting a large amount of coverage for very little. The tradeoff is you don’t get a guaranteed death benefit. The plan in force is only good up until a certain age (usually 70-75). Should you outlive the policy, a death benefit won’t be paid out. So while there are many great benefits to Term Life, you should be aware that there are also some potential risks.
Whole Life Basics: Whole Life is much different than Term Life. There is a guaranteed death benefit but the tradeoff is the premiums are more expensive. Whole Life policies grow in value over time, which is one of the main reasons so many prefer it.
Which Insurance Plan is Right for YOU?
Now that you understand the basic descriptions of the two main types of life insurance, it’s time to decide which is right for you. The answer is based on your age, financial situation, and career status. Please check the following to see which type of insurance is best for you:
Financial situation: Money is always going to be a factor in buying anything, whether it’s a new car or life insurance. Term Life is much less expensive than Whole Life, but doesn’t have as many benefits. If you have the money, you should always go with Whole Life.
Age and career status: Term Life insurance is extremely popular with those in their 20’s or early on in their careers. Whole Life is usually the life insurance of choice for those that are established in their respective careers. For example, if you are just out of college or just starting a new job, Term Life may be your best option. But if you have already built up a successful career, you’ll be better off with Whole Life.
Upgrading from Term Life to Whole Life
One of the great benefits of purchasing Term Life is most Term policies are transferrable to a Whole Life policy. Most purchase Term Life early on because the premiums are cheap, but then transfer the policy to a Whole Life policy later on when they can afford it so they have a guaranteed death benefit. So should you opt to start out with Term Life, you will be able to upgrade later on.