When you are considering which type of life insurance you want to get, you will need to choose between term life and whole life insurance policies. There are a few key differences between these two kinds of policies. You may find that one is better for your needs than the other. If you are in need of life insurance, give us a call today at AS Insurance Agency in Manchester, NH.
Term Life vs Whole Life: What You Need To Know About Life Insurance
Time Periods
Term life insurance has a major difference from whole life insurance policies. Term life is good for only a specific amount of time. It is set up for a specific number of years, and after that, the policy will expire. This isn’t the case with whole life policies. They stay in effect for the rest of your life as long as you keep on making the payments for the policy. When a term life policy expires, you have to apply for a new life insurance policy. With whole life, there is no expiration date, and you can keep the policy indefinitely. With a whole life policy, even the insurance company can’t cancel the policy if you are continuing to pay for it.
Cash Value
Another big difference is that whole life policies eventually build up a cash value. Policyholders can borrow against this amount if they should need to. Term life policies don’t have this. However, term life policies are less expensive than whole life policies. Because whole life policies continue into your old age, the cost of the premiums is higher. However, many people appreciate that the cash value is there if they should ever need to borrow it.
Get Your Life Insurance
When there are people who depend on you, it’s important to carry life insurance. Give us a call at AS Insurance Agency in Manchester, NH.
