There are two fundamentally different types of Life Insurance Service in Cherry Hill NJ from which prospective policyholders can choose. They are known as whole life and term life policies. Whole life policies cost a great deal more than term life insurance does. Why do many people choose the more expensive version of life insurance instead of the other one?
Term life insurance covers one-time frame, such as the next 10 or 20 years. The customer pays for the policy premiums as agreed upon with the insurance agency, just as is done with other kinds of insurance. The billing might be done monthly or semi-annually. If the customer stops paying the premiums, the insurance is canceled and no money is available to the beneficiaries.
Whole life insurance, in contrast, builds up an investment over time. That amount is still available to the policyholder or to the beneficiaries even if he or she stops paying the premiums. If the customer continues paying premiums, a nest egg is accumulated that can be used during retirement or can be added to the amount provided for the beneficiaries. People commonly choose whole life insurance when they are younger and term life insurance if they buy a policy during late middle age or their senior years. The term life policy will cover the practical death-related expenses they don’t want to make someone else responsible for.
Life insurance typically is intended for two main purposes: to pay for funeral expenses and related costs, and to provide for the family if a parent or spouse dies prematurely. The additional investment benefit of whole life insurance is the reason the premiums cost more. he benefit amount has a great deal to do with the premium cost. Someone choosing a $3,000 policy intended to pay for funeral expenses will have a lower premium than someone who has bought a policy that provides $200,000 upon the policyholder’s passing. Some individuals decide to buy both types of policies. It’s also possible to convert a term life policy to a whole life policy. More information that can help a person make these purchasing decisions is available from an organization such as M & C Insurance Agency.
