What is the difference between term and whole life insurance?

There is no question about it. You need life insurance to protect your family from suffering significant financial losses when you die. How much coverage you need and the type of life insurance you may choose to purchase, however, is relative to your preferences. HBW Insurance Group can help you find a life insurance policy that works best for your lifestyle in Catonsville, MD. 

What does life insurance cover?

The average life insurance plan pays for your funeral expenses and other final arrangements after your passing. Those you have deemed as beneficiaries of your policy may also receive compensation of which they may use for your funeral or other bills that you have left behind. 

It is not uncommon for the head of a household to purchase a life insurance plan that is well over $100,000. The reasoning behind buying so much coverage is to ensure that the financial aspect of the home runs smoothly after he or she has passed. Of course, not all life insurance plans are created equal. Some buyers may find it more beneficial to buy term life insurance, while others pay extra for whole life insurance. 

What is the difference between term and whole life insurance?

Term life insurance is significantly cheaper than whole life insurance because it only covers buyers for a period. The average holder purchases term life insurance for 30 years. A new policy needs to be reinstated after the 30-year mark if buyers want to remain insured. 

Whole life insurance operates differently in that the individual buys a plan that is valid throughout his or her lifetime. There are also other incentives associated with whole life insurance, which include the policyholder having the power to cash out the interest that accrues on the plan while he or she is still alive. 

Which option is right for your lifestyle?

Whether you choose term or whole life insurance largely depends on your lifestyle and what you expect to get out of your plan. Those looking for coverage that pays all of their funeral expenses and lingering bills after death may choose term life insurance because of its cheaper premiums. Buyers who may need extra cash for unexpected expenses may view whole life insurance as an all-around safety net. 

The agents at HBW Insurance Group can help you find the life insurance policy that is right for you in Catonsville, MD. Call them today to get started with a quote for coverage.