What type of policy is right for you? Term Life or Whole Life Insurance
Our life and work is probably the most meaningful and valuable exchange we share with our family. In many ways, we always strive toward giving the best of ourselves, sustaining our families financially; being reliable and available to care for the ones we love.
We get so caught up in living in the moment and often avoid planning for unpredictable moments or life changing events, which can happen in an instant.
Most of us think, as individuals we don’t need life insurance, but the reality is our families do.
Understanding life insurance and the available options/benefits is important:
Term Life
Term Life insurance does not build up cash value and it only provides coverage for a level-premium period; this coverage provides pure life insurance in its most inexpensive form and generally pays a death benefit only if the insured dies during the policy term.
For example, if you purchase a 20 year term life policy with a benefit of 1 million. Provided that you stay current with the premium, and you happen to pass away during those 20 years, your beneficiary gets paid 1 million. If you die after the term expires, there is no payout.
The advantage of a term life policy is its often simple, affordable and a good choice for people who are in excellent health, in the early stages of their careers, and young families.
The disadvantage is term life policies expire when the policyholder reaches a certain age, term policy rates increase due to age, health and rise in inflation.
Whole Life
Whole life insurance provides long-term financial protection, it has two components: one part life insurance and one part cash savings. This is a type of Permanent Life Insurance which can provide lifetime protection with a level premium, it’s has a guaranteed death benefit and cash value.
Premiums must be paid for as long as the policy is in force. Most Whole Life policies are eligible to receive dividends, if declared and paid. Dividends can be used to reduce or eliminate out-of-pocket premiums in later years.
The advantage of whole life insurance is it provides protection for your entire life. You can enjoy the same amount of coverage no matter your age, or even if you become gravely ill. The cost never changes, as long as you make sure to pay the premiums and the policy does not lapse.
The disadvantage is its more expensive, and the premiums are initially higher compared to term insurance.
There are different types of cash value building life insurance policies other than just whole life.
Other types include variable life and universal life Insurance, each of these permanent policies are differently structured and have different features and benefits.
Whether you are new to life insurance or are evaluating your life insurance policy, we are here to help you determine what life insurance coverage is right for you and your family.
If you would like to know more about affordable life insurance products and services, contact the Pettineo Insurance Agency at 954.493.9424 or visit our website, pettineo.com
Pettineo Insurance Agency Inc. provides life insurance in Fort Lauderdale, Lauderdale-By-The-Sea, North Lauderdale, Pompano Beach, Oakland Park, Boca Raton, Deerfield Beach, Hollywood, Sunrise, Coral Springs, Pembroke Pines, Sunrise, Tamarac, Plantation, Lighthouse Point and all of Florida.
