Which plan is the best for you?

Which plan is the best for you?

April 17, 2017

Find Out If a Term Life Or Whole Life Policy Could Be Better for You

Whether you’re overwhelmed by the sheer number of coverage plans available, going through a stage-of-life transition or uncertain of the various types of insurance policies on the market, choosing a life insurance plan can be stressful—at any stage of life.

When you purchase a life insurance plan, it’s essential to choose a policy that meets the needs of you and your family in your current stage of life. Below, we’ve outlined two of the most popular types of life insurance plan options: term-life and whole-life coverage. Use the following information to kick-start your policy search process.

What’s Whole Life Insurance?

Simply put, whole life insurance covers the policyholder for his or her entire life, with stability being the key benefit of this type of insurance. This means that once a plan is purchased, the policy will remain constant throughout all of the policyholder’s life stages. Additionally, if premiums are paid on time, they will never increase. Whole life not only provides guaranteed cash values and death benefits, but it also acquires value over time, which provides additional support.

Whole life coverage allows you to receive dividends, which adds to the value of your policy over time. This gives beneficiaries additional benefits upon your passing, including death expense coverage and long-lasting financial comfort. Unless premiums aren’t paid, a whole life insurance plan cannot be canceled by the provider. Rather, it can only be canceled if done so by the purchaser. Although it may be more costly upfront, whole life insurance is more financially beneficial in the long run; it’s unchanging premiums and forced saving structures will help keep you on track.

What’s Term Life Insurance?

Term life insurance provides coverage for a certain amount of time—or term—during your life. It’s often an alternative to whole life insurance when the purchaser cannot afford to invest in a long-term policy. Term life coverage is a secure option traditionally sought after in hectic circumstances. For example, when families begin to grow or additional financial responsibilities arise, term life insurance can supplement coverage for these times of need.

Typical term life policies range from 10, 20 or 30 years of coverage, and allow you to renew as often as you need. However, at each renewal point, the insured’s increased age and potential health risks can increase the cost of the plan. Additionally, term life policies do not offer cash back.

Your Next Steps

If you’re stuck trying to decide between whole life and term life, remember that you can have the best of both worlds. Whole life insurance coverage is recommended for security purposes and long-term financial benefit; however, it can be supplemented by term life coverage in high-need circumstances. Whichever life insurance coverage you choose, you can rest assured knowing that you and your loved ones are protected. Life insurance guarantees a legacy of comfort and security your family will cherish for a lifetime.

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