A life insurance policy is essential for anyone with loved ones who depend on them. It’s important to leave something behind to help prevent financial problems. Before getting a life insurance policy, it’s good to know the two main types and how they differ. These policies have big differences, causing them to work in very different ways. To learn more about life insurance, call us at Birmingham Insurance Agency LLC in Birmingham, AL.
Whole Life Basics
A whole life policy will stay good for life, even if you become very elderly. This is in contrast to a term policy that has an expiration date. A whole life policy never expires, so you never have to get another life insurance policy later. Many people find that they like the peace of mind that comes with this type of insurance because they can keep it for life. These policies also build up a cash value that can be used a few years down the road if you’re ever in an economic emergency and need to borrow money. A term life policy doesn’t have this feature.
Term Life Basics
A term life policy comes with a set expiration date that is known from the beginning. If you die during this time, a death benefit will be paid out to your beneficiaries. However, after it expires, you’re no longer covered. However, many people choose this type of life insurance because it comes at a much lower cost than a whole life plan. Many policyholders find it fits into their budgets much better than whole life insurance.
Get Life Insurance
Whether you want unending coverage or a less expensive policy, we can help. Contact us today at Birmingham Insurance Agency LLC in Birmingham, AL.
