Whole life and term life insurance are two very different types of life insurance policies. Understanding the difference between them can be important when deciding which type of coverage you need. Families in the Braselton, GA area have long turned to Bingham Insurance Group when they have questions about their policies. We are proud to serve them.
Whole life insurance is a permanent policy that provides guaranteed coverage for your entire lifetime. This type of coverage typically comes with higher premiums but also accumulates “cash value” over the years. This cash value can help pay for final expenses or other necessary costs during your lifetime.
Term life insurance is more affordable than whole life and is designed to provide coverage for a specific period, such as 10, 20, or 30 years. While term policies do not accumulate cash value like whole life policies, they can provide protection if you pass away unexpectedly during your coverage period. Once the term ends, however, your policy will expire unless you renew it at a higher rate.
When deciding between whole life and term life insurance, it’s important to consider the length of time you need protection and whether you want or need the additional benefits provided by whole life policies. Ultimately, which type of coverage is right for you depends on your needs and long-term goals.
If you have any additional questions about the differences between term life insurance and whole life insurance or have questions about your own policy, give us at the Bingham Insurance Group a call today. We proudly serve the Braselton, GA area.