Term vs. Permanent Life Insurance: Which is right for you?

By May 13, 2019 Personal Insurance

Buying life insurance means providing your family with a financial safety net in the case that something happens and you’re not there to provide for them.

Life insurance can make up for your lost income to provide for things like funeral costs, childcare, college tuition, your spouse’s retirement, and more. Click here to view an interactive graphic of all the ways life insurance can protect your loved ones.

Now that you know you need coverage, you may find that deciding what type of coverage brings up some more questions. Life insurance is more complicated than many other types of insurance, but don’t let the complexity of the products keep you from getting covered.

What type of life insurance should I buy?

There are three main types of life insurance: term life, whole life, and universal life.

If you buy term life insurance, you’ll pay regular premiums for a set period of time, and the policy will only pay out if you die during that period.

If you buy whole life insurance, you pay regular premiums until you die, at which point the policy pays out. Along the way you may be able to take a lump sum back out of the policy, but this will obviously lessen the amount that is paid to your beneficiaries when you pass away.

A third option is universal life insurance, which is similar to whole life insurance. The difference is that universal life insurance offers more flexibility when it comes to taking money out of the policy early. You can borrow money from the policy and pay it back later – just keep in mind that if there is a loan outstanding when you pass away, the payout of the policy will be affected.

What will my life insurance premiums be?

The premiums you pay will depend on the type of coverage you buy and the amount that the policy will pay out, in addition to factors like your age and medical history.

Next steps

The best way to find out what type of life insurance coverage is best for you is to talk to us about your unique situation. We’ll be happy to walk you through the options and help you determine the best solution for you and your family. Fill out the form below to get started.

Let’s discuss your life insurance.

One of our insurance advisors will reach out to you to review your information and present you with the appropriate life insurance solution. There’s no obligation, just good-old-fashioned advice.