Term vs. Whole Life Insurance

Everyone is different, and thats why there are different life insurance policies out there. Two big types of life insurance in CT are term life insurance and whole life insurance. There are pros and cons to each type.

Term Life Insurance

Term life insurance only lasts for a set time. It is beneficial because it has low premium costs, but high coverage. It can be a great policy for a recent college graduate who doesnt want their parents to be saddled with their student loans. All they have to do is take out a term life insurance policy for the duration of their loan, and they dont have to worry.

Once the time period is over, the life insurance is over. That means that if you want to renew this policy you have to go through all of the hoops again, so if your health is no longer as good that can be quite difficult.

Whole Life Insurance

Whole life lasts as long as the policy holder is making payments. This means that as long as you make the proper payments, no matter when you die the insurance will have to make a payment. Whole life can also be an investment vehicle. It can provide cash value that is tax free and has a fixed rate of return.

Whole life insurance is more expensive than term insurance. Probably because it lasts the entire life of the policy holder, and it has the cash value aspect to it.

Talk to an Insurance Agent

No matter which policy you think is best for you, you should find an agent that deals in life insurance in CT to get all of your questions answered.

Moe