Term Vs Whole Life Insurance

Term Insurance

Term Life Insurance or as some refer to it as a standard Life Insurance does not build any cash value while you own the policy. If you die while you own the policy then the death benefit is paid to your beneficiaries. The death benefit will be the face amount of the life insurance policy. Even if you pay premiums for many years, the death benefit or face value will be the amount paid at the time of death. Term insurance premiums are lower than whole life premiums for the same face value. Term life insurance does not build or hold any cash value so it is not an asset during the time of your life.

Keep in mind term insurance benefits are also limited when comparing term benefits to other types of life insurance policies. Term policies don’t provide maturity or survival benefits in that the policy pays death benefits for a person beginning at a certain date. If you are looking for your premiums to accumulate any investment value or benefits in excess of the face amount of the policy then Term Insurance is not the Right Choice for you.

Whole Life Insurance

Whole Life Insurance policies begin to accumulate value after the first premium is paid. Part of every premium paid goes to pay the life insurance portion of the policy and then part of each premium paid goes to an investment or another form of financial asset. Over time, you can borrow against the whole life policy, you can borrow from the investments or you can let the policy grow with you as you get older. Whole life insurance policies are assets that build value in addition to paying the face value at the time of your death. Depending upon the type of whole life policy the premium may be collected for a particular period of time (i.e., until you are 65 years old) or throughout life.

People who are looking for investment or saving plans can choose the whole life plan. There are many types of life insurance plans available in the market and no one plan is right for everyone. At Ga Insurance Brokers we spend time with you in order to choose the life insurance policy that is right for you and your family. We offer free consultations from our expert team at Ga Insurance Brokers having more than 20 years of hands-on experience in this field.