Decide whether whole or term life insurance in Hudson is best for you.
Many people want life insurance for the peace of mind it provides, but shopping for policies can get confusing. There are two main types of life insurance: term and permanent. As the names suggest, one is for a pre-determined period of time while the other is for the policyholder’s entire life. Once you’re gone, your family will rely on such a policy to cover funeral costs, mortgage payments, college tuition, and additional expenses. To determine whether whole or term life insurance is better for your family, read on.
Term Life Insurance
Term life insurance provides coverage for a certain period of time, say 10 or 30 years. It is the easiest form of life insurance because it simply provides coverage to a policyholder in exchange for a premium. If the policyholder dies within the term, then the beneficiaries receive the death benefit. If the policyholder outlives the term, then no benefit will be paid and the individual will need to secure life insurance once again.
Whole Life Insurance
Whole life insurance is a form of permanent life insurance, which tends to be more expensive than term. However, such a policy offers additional benefits. It provides lifelong coverage and includes an investment component known as the policy’s cash value. The cash value grows slowing, tax-deferred, meaning that you won’t pay taxes on its gains while it grows. You may borrow money against the account or surrender the policy for the cash. The premiums tend to save the same for as long as you live, the death benefit is guaranteed, and the cash value grows. There are many benefits to a whole life insurance policy that a term policy does not provide, although it can cost more per month.
Skip the search of finding the right life insurance provider for your needs. Visit Lofgren Agency to secure your life insurance in Hudson today.