What’s the difference? Term, Whole, and Universal Life Insurance

As insurance agents, we understand that choosing the right type of life insurance can be overwhelming. With so many options available, it's easy to get confused. In this blog post, we'll explain the difference between term, whole, and universal life insurance, and help you make an informed decision.

Term life insurance is a type of policy that provides coverage for a specified period of time, typically ranging from 1 to 30 years. If the policyholder dies during the term of the policy, their beneficiaries receive a death benefit. This type of policy is typically more affordable than other options and is often used to cover a temporary need, such as paying off a mortgage or providing for children until they reach adulthood.

Whole life insurance is a type of permanent life insurance that provides coverage for the entirety of the policyholder's life. In addition to the death benefit, this type of policy also includes a savings component, known as cash value. The cash value grows tax-deferred over time, and policyholders can access the funds through loans or withdrawals.

Universal life insurance is another type of permanent life insurance that offers more flexibility than whole life insurance. Like whole life insurance, it includes a death benefit and a savings component. However, policyholders have more control over their premiums and death benefit amounts. They can adjust their premiums and death benefits as their needs change over time, making it a more customizable option.

When deciding which type of life insurance is right for you, consider your needs and budget. If you're looking for affordable coverage for a specific period of time, term life insurance may be the best option. If you want lifelong coverage with a savings component, whole life insurance may be a better choice. And if you want the flexibility to adjust your premiums and death benefits, universal life insurance may be the way to go.

At Intelli Choice Insurance, we can help you navigate the complex world of life insurance and find the policy that best meets your needs. Contact us today to learn more.