Know which type of life insurance policy you need before you start your search.
Buying life insurance provides a safety net for your dependents later if you’re not around to take care of them. From helping with burial costs to unpaid debts to saving for the kid’s college tuition, life insurance helps families in more ways than one.
There are two main types of life insurance:
Term life insurance
This is easy to understand and typically has the lowest rates. This insurance provides death-benefit coverage for a limited period of time, the relevant term as specified in the term insurance policy (this could be one year, five years, 10 years, or 30 years, generally). The death benefit is paid out by the life insurance company only if the policyholder dies during the term of the policy. The contract would simply expire if no death occurs by the end of the term.
Whole life insurance – This is more complex and tends to cost more than term, but it offers additional benefits. It covers the policyholder for his or her entire life (hence whole life) in the form of either an eventual death benefit or a so-called cash surrender value. The latter can occur when the policyholder decides to cash out and, essentially, cancel the policy.
Do you know what to look for in a life insurance policy and what it can do for your loved ones? Contact Donald Weiss Insurance Services. Our dedicated team will help determine your coverage needs, helping you pick the right policy and give you the peace of mind you and your family deserve.