With all of the different life insurance options available these days, it can be confusing to know which one is the best one for you. If you’re looking for life insurance in Mohnton, your best option is either term life or whole life.
The purpose of life insurance is to pay out a death benefit when the person who holds the policy dies. People get life insurance so they can rest assured that their loved ones will be financially taken care of when they pass away. Both term and whole life insurance do this.
Term life insurance is a policy that is taken out for a certain number of years, or a term. The premiums are lower with term life because usually the term is up before the holder dies, so there is no pay-out needed. Once the term is up, you can choose to start a new policy or switch to something different. However, once your term is up, you do not see any of the money you invested in it -; there is no return if you are still living after your term expires.
Whole life insurance does exactly what it sounds like -; it covers you for your entire life until the time comes to pay out your death benefit. Whole life insurance has much more expensive premiums, because it is guaranteed to cover you until death. Another similar option is universal life insurance, which is developed from whole life. Universal life simply has more flexible premiums and death benefits.
The idea behind term and whole life insurance is comparable to renting an apartment verses buying a home. You pay monthly rent to live in an apartment, and at the end of your lease, you are left with nothing. The same is true with term life insurance; you pay for it while you have it, but when it’s over, you’re left empty-handed. If you buy a home, you pay a mortgage and when that’s over, you are left with the house in your name. With whole life insurance, you pay for it your entire life, and when you pass away your family is left with the benefits. It all just depends on what type of life insurance in Mohnton you want to invest your money in.