Purchasing life insurance is one of the most important things you can do to protect your family, but it can be difficult to understand which policy is best for you. At Michael Taylor Agency in Columbia, SC, we work hard to match our clients with the best policy for their needs.
Term life provides life insurance coverage for a specified term, which is generally 10-30 years. When the term is over, you may have the option to renew the policy. However, your premium may change if you choose to renew the policy.
Term life insurance can be the best option if you plan on being financially secure enough to not require life insurance after the term is, or if you are at an age where you don’t expect to outlive the policy. Term life premiums are generally less expensive than whole life premiums, but the only value term life offers is the death benefit. If you outlive the policy, you and your family don’t receive any money.
Whole life policies are more complex than term policies. Your policy will cover you until your death. It also builds cash value. Many policies allow you to borrow against the cash value or cash out the funds. However, this may be removed from your death benefit if it isn’t replaced. Whole life policies earn a modest interest rate. Premiums are higher for a whole life. One reason for this is that the company will have to pay the benefit upon your passing, unlike term life where you may outlive the policy. The other reason is the cash value the policy builds.
Whole life insurance can be the best option if you want a policy that will remain with you until your death and if you are looking for an easy way to invest.
No one wants to think about life insurance, but the right policy will keep your family financially stable. To learn more about which life insurance policy is best for you in Columbia SC, contact us at Michael Taylor Agency.