The most basic feature of a life insurance policy is the death benefit. The amount of money your beneficiaries will receive when you die. It’s the core reason to own life insurance – but not the only one. What’s the difference between Term and Whole Life insurance?
Term Insurance
Term life insurance provides protection for a specific period of time. Similar to renting an apartment. It makes the most sense when your need for life insurance will disappear at some point, such as when your children are grown. The most common term policies are 10, 20 or 30 year policies. The rate is locked in for this period of time and the premium is calculated based on the age when you purchase the policy.
Whole Life
Whole Life insurance, AKA permanent insurance, offers lifelong protection, and you can accumulate cash value on a tax-deferred basis. Similar to owning a house. The cash value can be used for a variety of purposes or you can let it continue to build. Whole Life is a great product for children, burial needs or anyone who needs a smaller amount of insurance.
Blended Life Insurance
A great option for a lot of our clients is a blend of Term and Whole Life. Clients will protect the bulk of their life insurance need with Term insurance and a smaller portion with Whole Life. This way, when the Term policy expires they will still have a permanent life insurance in force.
The Andrew Agency
The Andrew Agency works with several companies providing life insurance and we are happy to discuss your situation. If you live in Virginia, Maryland or South Carolina contact us at (804) 320-2886 or email us at [email protected].
