Life Insurance: Whole life vs. Term Life

You know that you should have a life insurance policy, especially if you have dependents like a partner or children who rely on your income earning abilities, but which kind is right for you? Most people can get by with one type or the other. Here’s a look at the basic differences between term life and whole life insurance:

Term life insurance policies are good for a set length of time such as 10, 15 or 20 years. You are only covered during this term, and once it’s up, you can get a new policy or end it. If you cancel it, then you get back nothing–besides having had peace of mind–in return for the money you’ve paid in. This is good for young families who would suffer financially with the loss of one partner’s income but have plans to become financially independent by the time the kids are in college.

On the opposite side, whole life insurance acts as a savings account. Part of your premiums are applied towards a “cash value” amount which you can borrow from or take out should you decide to cancel the policy. As long as you continue to pay your premiums, whole life policies never expire. When a claim on the policy is made, any outstanding loans from the “cash value” are taken out of the policy value.

To get you life insurance questions answered by your Pleasant Hill insurance agent, and see which one is right for you, contact Lou Agetta Insurance today.

Lou Aggetta Insurance, Inc.

2637 Pleasant Hill Rd
Pleasant Hill, CA 94523

(925) 945-6161 | Phone
(925) 256-7610 | Fax