There are many kinds of life insurance policies, but they mainly fall into two categories.
Life insurance is what you do to give your dependents a fighting chance should anything unforeseeable happen to you. While there are many life insurance policies out there, many of them fall within the realm of two broader policies—whole (or permanent) insurance, and term insurance. If you are interested in giving your family a strong cushion to fall back on, should you pass, learn the difference between the two kinds of life insurance policies!
Whole Life Insurance
Also known as permanent life insurance, this kind of insurance sticks with you for as long as you live (as indicated by its name). As long as you pay the premiums, and no surrenders are taken, the full amount will be paid to your beneficiaries. Whole life insurance develops cash value, so you can use it should you hit retirement and decide that you no longer wish to pay the premiums.
Term Life Insurance
As this name suggests, this kind of insurance only lasts for a term and is designed to meet temporary needs. Upon making your policy, you choose the amount of time for which you wish this policy to last (usually, 10, 15, or 20 years). Once the policy is over, your beneficiaries will receive nothing; you have the option of renewing your policy or switching to a life insurance policy. It is a good policy to have if you know you’re going to need it for a specific amount of time. For example, you may only want coverage until your children graduate from university.
When looking for the right life insurance policy that will best meet your needs, contact Donald Weiss Insurance Services. As an independent insurance agency in Santa Monica, California, we will help you find the perfect policy for your specific situation, all at the right price to fit your budget.