Know the Differences Between Whole Life vs. Term Life Insurance
Find out if whole life or term life insurance in Orange, California is right for you.
If you’re looking to buy life insurance in Orange California, then you probably know that the two main types are whole life and term life insurance. If you’re struggling to decide which policy is right for you, it’s important that you know the differences between the two. Learn more about the pros and cons of each type of policy to ensure that you choose the right life insurance coverage for you.
Whole life insurance essentially provides life insurance coverage that never expires. So long as you continue to pay your premiums, you beneficiaries will receive compensation when you die. Whole life insurance is unique in that it has a cash value that increases (or decreases) over time. This allows you to borrow against your policy or close your policy to receive a portion of this cash value.
- Pros: The cash value component could be a good financial investment. Whole life insurance policies can be useful as part of a custom finance strategy.
- Cons: Unfortunately, whole life policies are more expensive than term life. This type of policy is really only useful for individuals with a lot of assets and income to play around with. Additionally, these policies pose the risk of your cash value actually decreasing over time
Term life insurance is a bit more simple than whole life. Basically, the policy holder sets a term (usually between 10-30 years) and pays premiums throughout this term. If you die during your term, then your beneficiaries will receive compensation. However, if you die outside your term length, then your insurer has no coverage obligations to your beneficiaries.
- Pros: Term life policies are more affordable and less complicated than whole life policies. Your policy does not carry the burden of hidden fees, exclusions, or risks.
- Cons: Your policy does have an expiration date. If you still need coverage after your term expires, then you’ll have to shop around for a new term life policy.
Ultimately, choosing the right life insurance depends on your individual needs and circumstances. Whichever type of policy you choose, it’s important that you have the right insurance professionals by your side. To get the best life insurance in Orange, California, contact the team at Remland Insurance. Our experts are ready to assist you with all your insurance needs.