Protect Your Family's Future
Whole Life and Term Life - What's the difference?
Whole life insurance is permanent life insurance, meaning it will pay a specific death benefit, or payout, in return for your paying the premiums. As long as you make your payments as agreed upon, you will be covered for life.
Whole life insurance also serves as a type of savings account, wherein you can build a tax-deferred cash value that you can borrow against if needed. The accrued value depends on your premiums minus expenses and other charges implemented by your life insurance company.
Term life insurance is similar to renting an apartment or house. When the "term" is up, you need to renew your rent, usually at a higher rate, or find somewhere else to live. Most people outlive their term (10, 20, 30 years), so the policy ends before death or switching employment. After the term, you’re older and less insurable — premiums can jump 10 times or more with less coverage. Term insurance pays out only about 1.8% of the coverage on a national average. Term life insurance does not build equity or cash value.
Term Life is best used to cover a specific period of time at a low cost as in protecting a family's home mortgage.
How Whole Life Insurance Works
Your whole life insurance rates are determined by your age, medical history, and coverage goals.
These factors allow us to create a plan that suits your needs best. Once decided, the premiums are fixed throughout your plan and the death benefit is certain.
Some insurance companies allow you to make payments monthly, quarterly, or biannually.
Many coverages allow for modified coverage within age ranges called Guaranteed Insurance Option(GIO), allowing you to adapt your coverage without medical information updates or medical examinations as your life style changes.