How Term and Whole Life Insurance Policies Work

There are two main kinds of life insurance that are important to understand before you choose your type of coverage. These two types have a lot of similarities, but they also have a lot of differences. They fit different budgets and offer different benefits. To find out more about life insurance, you can give us a call at Goodman Insurance, Inc. in Shelton, CT.

How Term Life Insurance Works

Term life is a type that has a set time for which the policy remains good. It will be a specific period of time, such as 10 or 20 years. During that time, the policy is in force. However, at the end of the term, it expires. Many people don’t like the idea of having to get a new policy after the first one expires, but this type of policy is more budget-friendly. It’s a type that comes at a more affordable rate than whole life, and many people find that it’s the type they need to get because of their budgets. 

How Whole Life Insurance Works

Whole life policies never expire. They will stay in effect for as long as you keep paying for them. These policies are more expensive but come with a cash value after a few years. This value builds up through the years and is a general fund you can borrow if you ever need to. Many buyers like having this amount available just in case they have a financial emergency and need access to a loan. The loan is paid back like any other, but the unpaid amount is deducted from the death benefit until repaid. 

Get Life Insurance

To get started with a life policy, call Goodman Insurance, Inc. in Shelton, CT.