What's the secret to living a long, healthy life? Unfortunately, we don't have the answer, but we do have some information on life insurance, which might be the next-best thing. The two main types of life insurance are called whole term and term life, and both have their benefits as well as their downsides. Here are some comparisons:
Whole life insurance:
- Policy spans the entire life of individual
- Extra cash benefits are accumulated the longer the policy is held
- Money is paid out to the beneficiaries upon the policyholder's death
- Costs more than term life initially, although it has better payback in the long run
- Premiums never change as long as you keep the same policy
Term life insurance:
- Policy only lasts for the term it has been purchased for, whether it is 5, 10, or 30 years
- No extra cash or benefits come with the policy
- Money is paid out to the beneficiaries only if the policyholder died during the term of the policy
- Costs less than whole life up front, although there are no monetary benefits
- Premiums get more expensive as you age
Life insurance is very important to have, and it's all up to you to weigh the pros and cons of what kind of policy you need. Your decision can also be affected by your age, health, and family. If you ever need advice or a quote on life insurance, we're here to help!
