• Home
  • Get A Quote
  • Customer Service
  • Refer a Friend
  • About Us
  • Location Map
  • Employee Directory
  • Privacy Policy
  • Contact Us
"Insurance That Comes with an Agent"
                         
Our
Agents
Are
Standing By | 225.292.7680
Home
  • Home
  • Get A Quote
  • Customer Service
  • What We Offer
    • Annuities
    • Auto Insurance
    • Business Insurance
    • Dental Insurance
    • Flood Insurance
    • Health Insurance
    • Home Insurance
    • Life Insurance
    • Limousine Business Insurance
    • Motorcycle Insurance
    • Pet Insurance
    • RV Insurance
    • Renters Insurance
    • Watercraft & Boat Insurance
  • Blog
  • Resources
    • Make a Payment
    • Refer a Friend
    • Important Links
    • Insurance Glossary
  • About Us
    • About Us
    • Employee Directory
    • Location Map
    • Privacy Policy
    • Customer Testimonials
  • Contact
    • Contact Us
    • Join Our Newsletter
Auto Insurance AUTO

Auto insurance protects you against financial loss if you have an accident.

Read More
Homeowners Insurance HOME

A standard policy insures the home itself and the things you keep in it.

Read More
Business Insurance BUSINESS

Discover the perfect insurance options to meet your specific and unique needs.

Read More
Life Insurance LIFE

Browse a variety of insurance options in order to find the right one for you.

Read More
Health Insurance HEALTH

Learn about different health coverage options that fit your specific needs.

Read More
Boat Insurance BOAT

Finding insurance doesn't have to be difficult. We do the work for you.

Read More
Home > Blog > Term Life Insurance vs. Whole Life Insurance
WEDNESDAY, MARCH 1, 2017

Term Life Insurance vs. Whole Life Insurance

Family

Do you find yourself puzzled when it comes to life insurance? Well, the good news is, you are not alone. Deciding what product is best for you and your family can be challenging. People often struggle with which option is right for them. There are two main types of life insurance: term and whole (or permanent). Both term and whole life insurance offer beneficial protection but each has diverse features. Let's start with the facts then you can decide whether a term or whole life insurance policy is the best choice for your loved ones.

What Is Term Life Insurance?

Term life insurance policies pay death benefits for specific time period. This means that if you die during the period covered by the policy, the proceeds would go to your beneficiaries. This type of coverage is referred to as "term" because the insurance lasts for as long as the term you select. The policy term can be as little as one year and up to as much as thirty years. If you were to stop paying the premiums, the insurance would stop; however, if you were to pass away during the selected policy term and continued to pay your premium, a precise lump sum would be paid to your loved ones.

How Much Does Term Life Insurance Cost?


Term life insurance tends to be simpler and a little more affordable than whole life insurance. Premiums for life insurance vary according to: age, gender, weight, height, health status, smoker/non-smoker and participation in high-risk occupations. Payments are usually made monthly or yearly. Once the payments are made, you and your family are protected for the agreed term. Term life insurance premiums increase at each renewal point. Depending on which term you chose, this increase may be at the end of your one, five, ten, twenty or thirty year policy. Term life insurance premiums are typically reasonable for healthy people under 50 years of age.

What to Know If You Are Considering Term Life Insurance:


Generally, you should consider a term life insurance policy to:

- get valuable coverage at an affordable price
- help provide for a family's loss of income, covering short-term debts and needs, providing additional insurance protection during the child-raising years
- supplement a permanent policy or work policy
- help cover unique financial responsibilities like a mortgage or college expenses

What Is Whole (or Permanent) Life Insurance?

Whole life insurance offers level premiums and life insurance protection for as long as premiums are paid. A whole life insurance policy will cover you for your whole life. In most cases, the cost of your premium will never change as long as you continue to pay. A whole life insurance policy is a permanent death benefit that is designed to provide life insurance coverage and stability plus other "living benefits". There is potential for additional growth of policy value through dividends. Meaning, as you pay your insurance premiums, some of what you pay is available to borrow against or cash out during your lifetime.

How Much Does Whole Life Insurance Cost?

Premiums for a whole life policy are commonly higher than a term life policy initially, but remain level regardless of your age for the life of the policy.The amount you pay initially depends on how much coverage you want/need. As with a term life policy, factors that also contribute to the cost of a whole life insurance policy are: age, gender, health, smoker, etc.

What to Know If You Are Considering Whole Life Insurance: 

You should consider a whole life insurance policy if you want:

- protection for life
- payments that stay the same each year
- to be able to put additional money into the policy on a tax-favored basis
- cash value you can use while you are living
- a great long-term solution

So now it is up to you to decide which policy would be the best for you and your family. Each type offers its own unique features while also giving you valuable protection.Term life insurance tends to be cheaper and lasts as long as the policy is in effect; whereas whole life insurance, generally more expensive, is intended to protect you and your family for their entire life.

To estimate the amount of life insurance your family would need, first calculate everything you now provide for your family including: salary, benefits/health insurance, 401(k) & retirement savings and personal services such as, child care, cooking, home maintenance, etc. You would then want to subtract your personal expenses including annual spending on personal needs (food, clothing, entertainment, etc). Your goal should be to develop a life insurance plan that, following your death, will allow your family to live comfortably without your economic contribution. 

Keep in mind that these are simply guidelines. Contact our office at 225-292-7680 if you have questions about your life insurance needs.

Posted 5:18 PM

Tags: life insurance, term life policy, whole life policy, family, loved ones, permanent life insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016

  • insurance(23)
  • general liability insurance(16)
  • workers compensation insurance(12)
  • workers compensation(10)
  • coverage(7)
  • baton rouge(7)
  • business insurance(6)
  • louisiana(5)
  • general liability(4)
  • workers(4)
  • commercial(4)
  • home insurance(4)
  • compensation(4)
  • auto insurance(3)
  • liability insurance(3)
  • boat insurance(3)
  • health(3)
  • business(2)
  • life insurance(2)
  • risk management(2)
  • holidays(2)
  • general(2)
  • healthy living(2)
  • homeowners(2)
  • liability(2)
  • commercial general liability insurance(1)
  • auto longevity(1)
  • spring(1)
  • rv license(1)
  • car maintenance(1)
  • family(1)
  • bodily(1)
  • term life policy(1)
  • break-ins(1)
  • umbrella insurance(1)
  • winter(1)
  • workers comp(1)
  • safe driver(1)
  • chronic pain(1)
  • auto tips(1)
  • holiday decorating(1)
  • risk(1)
  • builders risk insurance(1)
  • commercial auto insurance(1)
  • insurance terminology to know(1)
  • christmas holiday(1)
  • basic insurance terms(1)
  • decorating safety tips(1)
  • baton rouge home insurance(1)
  • cyber liability insurance(1)

View Mobile Version
Facebook
LinkedIn
Yelp
Google+
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Twitter Logo
Tweets by @iiiorg

Resources

Home About Us Get a Quote Customer Service Refer A Friend Contact Us

Contact Us

Map
  • 5432 Superior Drive Suite A
  • Baton Rouge, LA 70816
  • Office: 225.292.7680
  • Fax: 225.292.7526
© Copyright. All rights reserved.
Powered by Insurance Website Builder