Each year, May 2nd is celebrated as National Life Insurance Day, bringing awareness to the benefits of life insurance. And this year we decided to go back to basics and go over the two main types of life insurance: term & whole life.
With term life insurance, coverage is in place for a set amount of time. While traditionally less expensive, the policy may end while you’re still living.
With whole life insurance, coverage is in place for your entire life and can build up cash value. A whole life policy can help you fund life’s financial opportunities — or realities — without tapping into your savings.
Many individuals begin their financial plans with term life insurance because It’s simple to understand, while also being affordable and predictable. However, once your term is up, so is your coverage.
Fortunately, there is a way to make your term policy last – with the option to convert your policy to permanent protection. Amongst its many big benefits, with whole life insurance, a cash value is built up that can serve as a source of funds for various opportunities or needs that can spring up in your life.
Having further protection will give you the reassurance you need to know your family will be financially protected when the time arises.
Prepare for all of your tomorrows
By purchasing term, whole life, or both, you can have the financial confidence that your family will be protected through a guaranteed death benefit. Term life will protect you for a set period of time (10, 15, 20, or 30 years). Whole life provides protection for a lifetime. This means you can leave a legacy, while protecting your family, even when you’re no longer here.