What is the difference between whole and term life insurance?
Whole life insurance is a type of permanent life insurance that covers your entire lifetime. As long as you pay your premiums, your policy will remain active and guarantee that your loved ones are protected in case of an unexpected death. Unlike other types of life insurance, such as term life insurance, whole life insurance guarantees a certain payout amount once the insured person passes away. This means that whatever amount you select to be paid out – whether it’s $50,000 or $5 million – will be guaranteed to go toward your loved one’s financial needs after you pass away.
On the other hand, term life insurance provides coverage for only a fixed period or a “term.” This means it only covers you for a certain number of years – typically 10, 15, 20, or 30 years. If the person insured under the policy dies during this term, their loved ones will receive a payout according to the policy terms; however, once the term is over, they will no longer be covered by the insurance provider and will need to purchase another policy if they wish to be protected in case of an unexpected death.
While both whole life and term life insurance provide valuable coverage to protect your loved ones financially in case of an unexpected death, which type of life insurance is best depends on your specific needs and situation. For more information, call the George Ryan Jr. Insurance Group Inc today. We proudly serve the Bourbonnais, IL area and would be glad to help you find a policy that is best for your needs and situation.