A Comparison of Whole Life and Term Life Insurance

The most common types of life insurance are whole life and term life insurance. They are similar in some manners, but also have several differences between the two. Learning about them can help you to make a decision on which of the two is best for your particular situation.

What is Term Life Insurance?

Term life insurance policies provide coverage for a specific term or amount of time. If you should pass away during the term, then the insurance company pays the benefits to your beneficiary. You can customize several parts of this life insurance from Benefit Insurance Services to fit your needs. The value of the death benefit is usually in increments of $50,000 and can be raised to suit your needs. The term length is anywhere from 1 year or 5 year increments up to 30 years. A level of death benefit pays out the same amount for the life of your policy. A policy is renewable so that it rises in cost as you get older, but you don’t need to re-qualify for it.  

What is Whole Life Insurance?

Whole life insurance has coverage that extends for your entire life without the need to set a term or to ever renew it. The death benefit remains the same throughout your lifetime, although you can purchase additional coverage. The premiums that you pay are consistent throughout the policy and you can pay them annually or for a period. Cash value is the amount you would receive if you surrender the policy to the insurer and receive a payout for the cash value your policy has earned. You can use this money to pay for other items. The cash value does not pay out to your beneficiary in Myrtle Beach, SC.

 Either type of life insurance policy is not perfect for all people. We understand at Benefit Insurance Services that it can be a crucial decision to make, and we are here to help you. You can visit our office in Myrtle Beach, SC or call us, so we can help you with your needs and find the life insurance policy that best fits your situation.