When you are looking for life insurance, you will be faced with the option of term life insurance and whole life insurance. The differences can sound confusing at first.
At Hausmann Insurance & Financial Services, we want Charlotte and Waxhaw, NC residents to get the right life insurance coverage for their needs.
Learn about the difference between term life insurance and whole life insurance here.
Term Life Insurance
Term life insurance is a simplified life insurance policy that is active for a set number of years, or a term. It could be a five-year term, 10-year term, or 20-year term.
If you pass on before the term ends, the coverage is paid out in one lump sum to your beneficiary. If the term ends before you pass, you can then convert your policy to more permanent life insurance or renew it depending on your circumstances at the time.
An insurance agent and broker can help you to determine the needs of your beneficiary, and how long your term should be, as well as how much coverage you should have. For example, a $500,000 life insurance policy on a 10-year term would give your beneficiary $50,000 a year to live on for 10 years.
Whole Life Insurance
Whole life insurance is a type of permanent life insurance that does not have a term. It lasts for the rest of your life or as long as you pay premiums on it. Some whole life insurance policies have a cash-value amount, where you can cash out some of your life insurance before you pass away.
Some of your premiums go into a separate account, and after a certain amount of time paying will be eligible to cash that out or withdraw it. You can also borrow against the account.
Get a Quote
When you are purchasing life insurance, you will need to talk to an agent to get the right quote and information on what kind of policy is best for you. Both have their benefits and advantages. At Hausmann Insurance & Financial Services, we want Charlotte and Waxhaw, NC residents to get the right life insurance product for their lives. Call us for a quote today.