Life insurance comes in two basic varieties: term insurance and whole life insurance. Term insurance provides a lump sum payout when you pass away during a certain period, and whole life insurance can be used while you're still alive. Both types can provide financial security to your loved ones when you pass away, but there are some definite differences between the two in terms of how they can be used.
Types of life insurance
While there are numerous variations on these policy types, here's what you can expect from the two primary life insurance policy types:
- Whole life insurance - This kind of policy can be used as a cash resource during your lifetime should you encounter some unexpected situation like an illness or surgery. Depending on your coverage, you may be able to access funds from your whole life policy to cover any unplanned expense that might arise.
- Term life insurance - While you may be able to pay lower monthly premiums on term life insurance, it generally lacks the feature of borrowing money against the policy. That means you'll need to carefully consider how you intend to use your life insurance policy.
At The Treece Agency, we'll be happy to discuss your needs and help you determine which kind of life insurance policy best fits your life circumstances. It will be essential to consider how you intend to use the policy, e.g., paying for funeral expenses, financial security for heirs, or as a cash resource while you're still alive. Our expert specialists can help you make the right choice.
If you're interested in providing for some of your family members after your passing, we can help arrange for the ideal life insurance policy to cover your needs. Please stop in at The Treece Agency insurance office in Tennessee, so we can discuss the details and provide you with a no-obligation quote. You'll have peace of mind, knowing that you've left your family members in a better financial condition and ready to face all the uncertainties of life.