Term Life Insurance Basics:
- Coverage for a "term" or period of your life
- Lower premiums for a higher coverage
- Rates can change after specific terms expire.
- No equity - cannot be used as cash value
Permanent Life Insurance Basics :
- Exactly like it says - permanent, not for a specific period
- Protection carries with you your whole life
- Can build equity and have cash value
- Higher premiums then term life, but can be more valuable in the long run
Term and Permanent Together :
- Build lifelong base of whole live coverage
- Supplement specific times of your life with term insurance
When to choose term life insurance?
Most people choosing term life insurance have a strategy for long term net worth and need specific coverage for a period of their lives to protect debt, loved ones, and children. For a homeowner with children it might make sense to have a term life policy to cover the mortgage and living needs until their children are old enough to provide for themselves - in this case the term would expire around the time your children move out.
When to choose whole life insurance?
Whole life insurance can be used in the retirement years as cash assets. It can provide equity for loans and have fixed payments that do not increase with time. Many times whole life insurance policies will pay dividends - although not always.
With so many options many people find themselves overwhelmed when they receive a life insurance quote. Let one of Kimbrell Insurance Agency's life insurance professionals put together the right life insurance policy for you.