Term VS. Whole life: The Differences You Need to Know
Life insurance is a protection against financial loss due to the death of the insured by paying out a death benefit to an assigned beneficiary. It is a valuable form of insurance that provides coverage to individuals, families, and business when a key person has passed away, leaving the survivors with funeral costs, living expenses, and debt. The insured, receives a medical examination to decide on his/hers health rating and pays a premium (monthly, semi-annually, or annually) based on the rating. In return, the insured receive coverage. Employers can also purchase group life insurance plans that can attract quality employees. If a business chooses to do so, its good to know that most plans do not require a medical examination, one less thing off your plate. So which type of life insurance is right for you? Once you decide, you can visit Cosmo Insurance Agency’s life insurance quote page by clicking here
Term Insurance
Term insurance is a period certain type of insurance. This means you can decide whether you are covered for 5 years, 10 years, 20 years, or more. It is cheaper than the other side of insurance (whole life) and has a designated death benefit of your choosing. The downside is that after the years have lapsed, there is no coverage and no cash value, unless you get ROP term insurance. ROP term insurance, return of premium term insurance, offers a return of the premium you paid into the insurance at the end of the coverage time you have selected.This option is suited for individuals and young families just starting out who want protection without cash value and for it to fit in their budget. Many people buy term insurance when they are young and convert to whole life in the future. Just remember the younger and healthier you are, the cheaper life insurance will be for you.
Whole Life Insurance
The other type of life insurance you can choose from is whole life insurance. Whole life insurance is permanent, meaning just what the name says, you have it your whole life. This type of insurance is more expensive than term insurance, but accumulates cash value while also having a death benefit. Whole life insurance is great if you are looking for protection and want your insurance to act as a savings vehicle that will increase over time. You can use the cash value as a pension, to pay off debts, or you can borrow money from it for monumental events in your life like a wedding, buying your first house, or to fund your children’s college career.
Bottom Line
It is up to you to decide whether you want to leave behind assets for your loved ones so they can carry less of a financial burden.
Cosmo Insurance Agency is knowledgeable in various options including but not limited to – term, ROP, permanent and whole – from over two dozen A rated carriers. We are familiar with the rate classifications that particular carriers use to determine the health class of enrollees – and there are significant differences between them. No matter what the results of your medical examination are, we will find the insurer that will provide you will the best rating class and thus the lowest premiums.
Employers, find out about our selection of group life insurance plans, which can help you greatly to attract and retain quality employees.
Call us today!
Phone: 732-363-3888
Email: info@cosmoins.com
