Some people choose a term life insurance policy over a whole life policy. While whole life policies come with their own advantages, many people turn to term life because it fits into their lives better. Term life insurance generally works like a whole life – it gives the policyholder’s beneficiaries a death benefit when they pass. The details, however, are very different between these two types of policies. If you’re in the market for life insurance, give us a call at Family Insurance Associates in Ruidoso, NM.
The Term of Time
Term life insurance is named the way it is because it’s good for a specific term. The term of time is set when the policy starts. Generally, the policy is good for several years, such as 10, 20, or 25 years. Once this term passes, the policy will expire and no longer be in effect. When this occurs, the policyholder will have to get a new life insurance policy in order to get covered again. This can be a disadvantage to those who outlive the policy’s term. However, term life does come with a very important benefit.
The Price of Term Life
A term life insurance policy doesn’t build up a cash value like whole life policies do. That means there’s no money there to borrow against if you should need it. However, term life remains popular because it comes with a much smaller price tag than whole life. This benefit makes it affordable for far more people than whole life policies. Many people who couldn’t afford whole life are able to get coverage with a term life policy.
The Protection of Life Insurance
When your loved ones need to be financially protected, call us at Family Insurance Associates in Ruidoso, NM, to learn more about term life policies.
