Life Insurance: What Type Should You Buy?

​Buying life insurance might be daunting, but determining the coverage you require is straightforward. There are only two life insurance policies to select from, term life insurance and whole life insurance. And that's what you'll be reading about today.

Term life insurance is the most common form of coverage and lasts for a certain period, but permanent life insurance covers you forever. You will be learning what each of these types is about to help you decide which one is the best for you.

Term life insurance
Term life insurance is only good for a certain amount of time before it expires. You pay premiums for the insurance, and if you happen to pass away during the term, your chosen beneficiary receives a specified sum of money called the death benefit. 

The cost-effectiveness of term life insurance is one of its advantages. Term life insurance plans are less costly and have lower premium expenses than other life insurance policies.

When weighing the benefits and drawbacks, most life insurance shoppers will find that term life insurance is more beneficial. Term life insurance is more beneficial to most life insurance shoppers seeking affordable life insurance for up to 30 years.

Whole Life Insurance
In contrast to term life insurance, most plans include a cash value that may be utilized as an investment or a tax-deferred savings account. You may include endowments and estate arrangements in the monetary value component. 

Furthermore, because this coverage is permanent, it can assist in supporting long-term dependents such as disabled children. Whole life insurance is quite expensive and provides coverage for the remainder of one's life.

The cash value factor makes life more difficult than term life because of costs, taxes, interest, and other obligations. But who will stand to gain the most? Whole life insurance is better suited to those who expect to have lifelong dependents or need simple permanent insurance.

Conclusion
For many, term life insurance is the best option. Permanent life insurance is available in three forms: entire, universal, and ultimate expense. As a result, you are free to pick the best one for you.

At Insurance Agency Network, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (425) 448-9190 or Click Here to request a free quote. Any coverage discussed is not guaranteed. Contact us today to go over your specific needs and we are happy to help you find a policy that works for you and your budget!