Not all life insurance policies are built the same, and it is important to know what type of policy you have. There are two main types of life insurance: term and permanent life insurance. The kind you have can make a big difference. To learn more about each type and the main differences, The Select Insurance Agency, serving Coppell, TX, has put together this quick guide.
- Term Life Insurance. Term life insurance tends to be less expensive. This may look good on the surface, but this is because it is a temporary type of life insurance and it has no cash value. In most cases, your beneficiaries will never receive a payout because most people do not end up needing their term life insurance policy. Term life insurance tends to only last for a few years or until a specific age. You can determine how long it will provide coverage by looking into your current insurance policy details.
- Permanent Life Insurance. Permanent life insurance, also known as whole life insurance, tends to be more expensive because the coverage lasts a lifetime and does not expire at a specific age or after a specific amount of time. Additionally, it has a cash value associated with it that will increase over time. There is a guaranteed rate of investment return on the cash value. You can also find fixed premiums to the cost does increase over time. This makes it ideal to purchase whole life insurance earlier rather than later.
If you are interested in learning more about getting permanent life insurance policy, be sure to contact The Select Insurance Agency, serving Coppell, TX today. They can help you start your application and provide you some quotes for coverage.