by – Sean Wyandt
Why might someone want to select a permanent life insurance policy rather then a term insurance policy? First let us look at the differences.
Term Life: Life insurance that pays a benefit in the event of the death of the insured during a specified term, or period of time.
Whole life: Life insurance that pays a benefit on the death of the insured and also accumulates a cash value.
This means you can out live a term policy, where with whole life you have a guaranteed death benefit. With a term product, they have no cash value, if you cancel the policy you will get nothing in return. Whole life policies have living benefits, and a cash account that grows, tax deferred. If you were to cancel before death you would receive the cash value, or if you were to have a hardship you may take loans against the cash value.  A whole life product has dividends, and the dividends are paid out much like they would be to a stockholder of a company. Term life does not.  Whole life does have a much high cost, but has many more benefits.
The choice is up to you, but always have an understanding of the product before purchase. When you’re ready to discuss Life Insurance, give me a call.
Share this article:
