When you contact The Insurance House for a life insurance policy, you might experience a surprise when your insurance agent asks what kind of life insurance you want. That’s because life insurance offers many options, boiling down to whether you want whole life insurance or a term policy.
Whole Life Insurance
Typically, individuals over the age of 30 years choose whole life insurance. For a small premium payment each month or quarterly, a whole life insurance policy covers them for accidental death and death by natural causes. The policy remains in force as long as the individual pays the premiums. That means you could purchase a whole life policy at age 31, and as long as you pay premiums on it, it will pay your beneficiary when you pass away, even if that occurs when you’re 101 and living in a retirement home in Tucson, AZ.
Term Life Insurance
Individuals under the age of 30 typically choose term life insurance. They purchase a policy upon graduation from high school or college and pay the monthly premiums for the term of the policy. These terms or periods range from 10 years to 40 years. The policy only pays in the event of the person’s death if they remain current on their premiums and pass away during the coverage term. That means if you purchase a 10-year term life insurance policy at age 18, then pass away at age 27 in an accident, as long as you remain current on the premiums, the policy pays your beneficiary. On the other hand, if you don’t renew the term policy and pass away at age 29, the policy does not pay because it wasn’t in force at the time of your death.
Why Choose Term Over Whole as a Young Person?
Term policy premiums cost a little less than whole policies. Insurance agents recommend that young people choose the term policy to save money on their monthly premiums, then deposit the savings – the difference between the cost of the whole premium and the term premium – into a savings or retirement account.
Contact Us Today for a Life Insurance Policy
Contact The Insurance House for more information on your life insurance options. Let us help you find the perfect policy for your situation.
