When you know that you need life insurance to help your loved ones after you’re gone, it’s a good idea to know about the two main types so that you can choose the right type of policy for you. Each type has its own pros and cons, and both work very differently from each other. When you need life insurance, you can call us at Pethel Insurance Group in Kannapolis, NC to find out more.
The Two Main Types of Life Insurance
Whole Life Insurance Policies
Whole life is named the way it is because it offers protection for your whole life. The coverage never expires, and it covers you even in your older years. This type of policy pays a death benefit upon the death of the policyholder, but it also has another benefit.
During the policyholder’s lifetime, the whole life policy will build up a value over time which is its cash value. This is an amount that the policyholder can borrow just in case they should ever need to. This is paid back as any other loan. It can help families that have a financial emergency and need that help to get out of it.
Term Life Insurance Policies
These life insurance policies have an expiration date that allows the policy to stay in place for a certain number of years. After that term has ended, the policy expires, and you will need to get a brand new policy to cover you.
There is also no cash value that builds up on these policies. However, they cost much less than whole life policies. This low price allows a lot of people to fit life insurance into their budgets that wouldn’t be able to otherwise.
Get Life Insurance Coverage
When you need to get a life insurance policy, call us at Pethel Insurance Group in Kannapolis, NC.