Are you looking to buy life insurance in Seguin, TX? It is common to have a few questions if you’ve never purchased this type of policy before. For example, most people wonder what the difference between whole life insurance and term life insurance is. Our team at the Allen Jones Insurance Agency has put together this brief guide to help you out.
What Is Whole Life Insurance?
Whole life insurance is a special kind of policy that covers you for your entire life, no matter when the policy was purchased or how long you live. As long as you keep making payments or reach paid-up status, you’ll have coverage. Premiums also lock-in, meaning if you get your policy at age ten, you’ll still pay the same rate when you’re ninety.
Whole life insurance also includes a cash value option that you can borrow against certain conditions while you’re living. That’s why many parents and grandparents purchase whole life policies for their children, as it offers a way to buy a first car or home early into adulthood.
However, it is important to know that whole life policies can cost much more than term insurance for the same death benefit amount. That’s why most people who have strict budgets opt for term coverage instead.
What is Term Life Insurance?
A term life insurance policy is different. Instead of being available your whole life, coverage only extends for the period of time you purchase. Most options are anywhere from ten years to twenty years, depending on your budget and needs. Term policies are less expensive, too. But they cannot be borrowed against like whole life policies.
Are you ready to discuss purchasing life insurance in Seguin, TX? Please contact our team at the Allen Jones Insurance Agency to schedule an appointment.