When people start researching life insurance, they can quickly become overwhelmed by all the different types of policies available. The most popular types are term life insurance and whole life insurance; understanding their differences is essential to making an informed decision. At B & G Insurance, we want to ensure everyone in the Miami, FL area knows how to pick the best policy for them.
Term life insurance covers a specific period, usually 10, 20, or 30 years. It’s often the least expensive type of policy with premiums that remain level during the covered duration. Once the term ends, so does your coverage, but you can renew it for an additional premium if necessary.
Whole life insurance falls under the umbrella of permanent life insurance and lasts until age 100 (or longer). This type of policy accumulates cash value – meaning that some of your premium payments build up an amount of money in a savings account that you can access if needed. Whole life insurance is typically more expensive than term. Still, it also provides "living benefits" like borrowing from the accumulated cash value or using the policy’s death benefit as leverage for a loan.
The decision between term and whole life insurance depends on your individual needs and financial situation. Term is often best for people who need coverage for a specific period of time or have temporary financial obligations (like children). If you want to leave a legacy or create tax-free income during retirement, whole life could be right for you.
If you have additional questions about which type of policy is best for you, give us at B & G Insurance a call today. We proudly serve the Miami, FL area.