Deciding whether to purchase whole life or term life insurance is a personal decision that should be based on the financial needs of your beneficiaries as well as your financial goals. Life insurance can be a very flexible and powerful financial vehicle that can meet multiple financial objectives, from providing financial security to building financial assets and leaving a legacy.
Term life insurance features:
Provides death benefits only
Pays benefits only if you die while the term of the policy is in effect
Easiest and most affordable life insurance to buy
Purchased for a specific time period, such as 5, 10, 15, or 30 years, known as a “term”
Becomes more expensive as you age, especially after age 50
The term must be renewed if you want coverage to be extended beyond the term length
Can be used as temporary additional coverage with a permanent life insurance policy
Can be converted to whole life insurance
Whole life insurance features:
Covers you for life
Provides death benefits as well as a cash value accumulation that builds during the life of the policy
You typically must qualify with a health examination
Can be purchased without a medical exam, but at a higher cost
Takes 12 to 15 years to build up a decent cash value
Can be a good choice for estate planning
Cash value is based on how much the return on investment is worth
A portion of the cash value can be withdrawn or borrowed during the life of the policy
Initially has more expensive premiums than term life insurance, but can potentially save you money over the life of the policy if in force for a considerable number of years
Contact Us!
At Folks Insurance Group, we can work with you to make sure you've got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 631.589.5100 or send us a note at jfolks@folksinsgrp.com. We want to help you meet your goals, and make sure what's important to you is protected!
