It can be difficult to choose the right kind of life insurance, but it’s one of the most important decisions you’ll ever make. Life insurance can give you peace of mind, knowing that those you leave behind will be protected. Below, you will get some guidelines that will help you narrow your choices considerably.
When Term Life is the Right Choice
You should consider buying Term Life Insurance in Wichita KS if you only need coverage for a certain period. Term life coverage allows you to customize the length of the policy. For instance, if your children are young and you want to ensure that there will be money for college, consider a 20-year policy. Term life is a viable choice if you need significant coverage but don’t have much money to spend.
This type of coverage only pays out if you die during the term, so rates per unit are lower than those of whole life insurance in Wichita KS. If you are still living at the end of the term, coverage ceases unless the policy is renewed or repurchased. With term life insurance, you cannot build cash equity. If you expect your financial status to change, you may consider a convertible term life policy. These let you convert to whole life coverage in exchange for a higher premium.
Choosing Permanent Life Insurance
You should consider buying permanent life insurance if you need it until you die. Whole life coverage allows you to build tax-deferred savings, and you can borrow against the policy no matter your credit status. Your death benefits are the loan’s collateral, and if you pass away before repaying the loan, the insurer collects what you owe before your beneficiary gets paid.
Remember that premiums for whole life policies are typically higher than those of term insurance policies. However, a whole life policy’s premium stays the same no matter your age while term policies’ premiums can increase with every renewal. There is a wide variety of permanent insurance policies, such as whole life, variable life, and universal/variable life coverage. For more details and advice, consult Andy Woodward Insurance Agency.