What Is Better? Term Life Or Whole Life Insurance

Let’s say that a Buford, GA resident has decided to purchase a life insurance policy. However, it can be difficult to choose between whole life insurance and term life insurance policies. To find out more about each of these policies and how they can best be utilized, be sure to read on.

Term Life Insurance

Those who purchase term life insurance only receive benefits after death and they must die while the policy is in effect. It is an easier policy to purchase and the use of the phrase "term" has to do with the amount of time that is being covered (anywhere from 5 years to 35 years).

These policies become more costly as we grow older. In order to ensure coverage over the long haul, these policies must be renewed before the chosen term has ended. They can also be added to a permanent life insurance policy. Term life insurance is able to be converted to whole life. 

Whole Life Insurance

These policies provide lifetime coverage and allow the insured to build a cash value accumulation over its lifespan. Health examinations are required and can be purchased without exams, albeit at a slightly higher cost. It will take between 12 to 15 years for the cash value to build. 

Whole life insurance is best for estate planning and works well for those who are looking to withdraw during the policy. The premiums are more than term life insurance policies and more suited towards those with more to spend upfront. 

Term life is best for clients who are younger, have children to consider and are the primary earner of their home. Older clients who are looking to care for their loved ones after they have passed on tend to choose term life insurance as well. Whole life insurance comes with j

Buford, GA residents that would like to learn more about the differences between whole life insurance policies and term life insurance policies are urged to pick up the phone and get in touch Town & Country Insurance. Their experts will be more than happy to help.