Old Bay Insurance Agency Blog
When you consult an insurance agent to protect your life, typically, you’ll be asked about which one to choose — term life insurance or whole life insurance. If both are unclear to you at this time, this article will talk more about them.
Before discovering the difference between term life insurance and whole life insurance, it would be better to understand first the essence of life insurance for you and your family.
The Essence of Life Insurance
Typically, most people don’t want others, especially their relatives, to be held accountable to pay off any unresolved debts that were sustained during their lifetime. Having a convenient means — life insurance plan — makes good sense because the compensation can pay the money that you owe. This will leave the people you love in a better financial position.
Understanding the Term Life Insurance Policy
As the most affordable life insurance option (much lower than the whole insurance plan), term life insurance policy can be bought for a specified period (one to twenty years.) When the term expires, there’s no return of the money that you paid for the policy. But, if you get deceased before the expiration of the plan, then the people you love will collect the full amount of the premium.
Understanding the Whole Life Insurance Policy
The protection that can last for your all-inclusive life as long as you remain to make payments on the premium is the whole life insurance plan. During your lifetime, you are free to cash out the policy and the funds that you have accumulated into the insurance plan. When you do this, you’ll not be covered anymore by what your insurance plan says, but you’ll have an immediate financial means when you have nothing out of pocket. The whole life insurance policy is more expensive than the term life insurance, but it’s an ideal way to ensure your life because there’s no time-constraint.
Good to know: If you have an existing term life insurance plan, you have the option to convert it to whole life insurance plan — a smart move when you feel you can outlive a term life policy. The whole life insurance plan caters to long-term goals, plus there’s a guaranteed cash value accumulation. All you need to do is to talk to an insurance professional to assess the eligibility of the convertible policy.
One More Thing Before You Go
Now that you understand the two options to safeguard your family, you’ll have the confidence to enjoy your life. Get the essential life insurance plan now from a reputable insurer to secure your future.
At Old Bay Insurance Agency, Inc, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (410) 777-5390. You can also request a free quote by CLICKING HERE.