What is life insurance, and why should you purchase which policy?
This kind of insurance is a contract between you and an insurance company that basically says, “should anything happen to you, your beneficiaries will have some financial assistance.” In exchange for premium payments, the insurance company provides a lump-sum payment to the listed beneficiaries (normally your family) upon your passing. There are two main types of insurance that are available to you: term life and whole life. Know the difference between the two to determine the proper life insurance that’s right for you and your family.
Term Life Insurance
Term insurance is designed to provide financial protection to your beneficiaries for a specific amount of time, usually 10, 15, or 20 years. Premiums typically remain the same throughout the entire period, but may increase if you renew the term life policy. Term life insurance is typically less expensive than permanent life insurance.
Whole Life Insurance
Whole life insurance is a permanent life insurance that, as the name suggests, lasts your whole life. Policy premiums are usually fixed, and, unlike term life, has a cash value, and may be cashed out once you retire and don’t need the policy any longer—all tax-deferred!
Whether term life or whole life is the one, is ultimately up to you. To learn more about term life insurance and what it would do for you, contact Donald Weiss Insurance Services in Santa Monica, California. Our dedicated team can help you determine exactly what you want to get out of your coverage, helping you pick the right policy with the right term for your goals. Don’t be left with questions when buying this crucial coverage; call us today!