As a Fords, NJ resident, getting a life insurance policy could be one of the most important decisions you can make in your life. However, for a long time, it has been challenging for people to differentiate between the two types of life insurance commonly offered by insurance organizations; term and whole life insurance. Five Star Insurance Agency provides the difference between the two and highlights the benefits.
Term Life Insurance
Term life insurance is a coverage that is only valid for a period of time, such as five years, twenty years, thirty years, or so. The whole essence of term life insurance is to provide death benefits to your beneficiaries once you pass while it’s still in force. However, if you die after term life has expired, your beneficiaries will not get death benefits.
One of the outstanding benefits of term life insurance is that it is the cheaper of the two, which is often by a wide margin. Other possible benefits of term life insurance are that it has a finite duration and is a simple policy.
Whole Life Insurance
Unlike term life, whole life insurance does not expire after a specific duration of time. However, you must make sure that you continue to pay the necessary premiums for it to remain in effect. There are several benefits that you will be accessing if you have a whole life insurance policy. Besides the apparent death benefits that your beneficiaries will be getting, there is some cash value, which can be a source of income in the future.
Do You Need Life Insurance in Fords, NJ?
As you can see, making a decision on the two types of life insurance available is always tricky. Five Star Insurance Agency helps individuals to make better decisions based on their income and the financial goals they want to achieve in the future.