When you begin planning your life insurance policy you may notice that there are two main types of policy: whole life and term life insurance. Whole life insurance is also sometimes called permanent life insurance. Which type of life insurance is more ideal for you will depend on your individual situation, and there are many differences between the two policies.
A term life insurance policy will cover you for a specific amount of time. It is extremely cheap, and it will pay out a specific amount upon your death. For those who are younger, this type of policy is even cheaper; the costs will go up as you age, but they’ll never be too significant. After the term expires, you will need to create a new policy.
A whole life insurance policy covers you until you die. It operates a lot like an investment account: you may a lot more into it, but the amount you pay is put into a managed fund and it is this fund that will pay out when you pass on. Whole life insurance policies can be beneficial for those that are looking for a blend between an investment and an insurance policy.
For more information about life insurance and planning for your family’s future contact the insurance experts at Gant Insurance Agency. It is never too early to protect your family.