Life insurance in Carlisle, PA is available in two main versions, which are called term life and whole life. The difference can seem confusing since the names for these policies aren’t very straightforward. However, it’s essential to understand the features of each before making a decision on which one to buy.
Features of Whole Life Policies
Whole life insurance has the advantage of building up a cash savings amount over time. As policyholders pay the premium each time it comes due, a certain amount accumulates as cash value. Policyholders can take out a loan against a certain percentage of the cash value. They also can cash out the policy entirely if they need the money or if they’ve decided to buy life insurance in Carlisle, PA from a different company. This coverage lasts for a lifetime as long as the customer keeps paying the premium.
This policy is more beneficial for many people, but it also has substantially higher premiums than term life does.
Features of Term Life Policies
Term life has the advantage of being the least expensive version. It could be thought of as a temporary policy that is renewed with each premium payment. This is the way automotive insurance works. The individual may only have the policy in an amount that would pay for expenses in the event of death. Policies with higher premiums pay money to dependent children in the event of untimely death.
The customer might decide to stop having this policy after all the kids have grown up and are on their own. The decision might be made after enough money has been saved up to pay for funeral expenses when this person passes away, or after funeral arrangements have been prearranged.
People who want to buy whole life insurance but can only afford term life may want to go that route for now. Most of those policies can be converted to whole life later, or the customer may want to choose an entirely different company or policy later. A representative of a company such as Farnham Insurance Agency can explain these details further and set the customer up with a life insurance policy.