Term Life Vs. Whole Life: Which Insurance Is Right For You?

Posted by Our Life Covered on Jul 11, 2017 5:33:00 AM

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Build your life with love. Protect it with life insurance.

We work hard for the good things. The security. The comfort. The joy. The premium channels and the soft toilet paper. We work to buy houses, and we work to make sure they feel like homes for the people we love. We work to help things grow…our knowledge, our careers, our experiences, and our families.

From the Ground Up

The bigger and better things get, the more important it becomes to protect them. It’s easy to convince yourself, in the warm glow of a good life, that love is all you need. Love is a perfect foundation (and if you’ve ever bought a house, you know how important the foundation is), but without the walls you build upward and the roof above it all, it doesn’t offer much protection.

Every good decision you make contributes to the strength of those walls. The degree you earned. The career you’ve built. The money you invest. The relationships you’ve established. The tough questions you’ve asked, and the tough answers you’ve gritted your teeth and accepted.

These reinforcements are ultimately what hold things together when they might otherwise come crashing down, and insurance is your roof, extending to every edge to make sure you’re covered.

Life insurance means that nothing, not even the very worst thing, can blow that roof completely off. It means that your love, bolstered by careful planning, will always provide shelter, even after you’re gone.

Choosing a Blueprint

There are a lot of options to consider when you’re looking for the right insurance policy, and that’s why we’re here to help guide you. There are two main types of life insurance to consider, and that’s a good place to get started.

TERM LIFE INSURANCE

Term life policies might be the way to go if…

  • You’re looking for the most affordable life insurance rates
  • You’re not ready to commit to a lifetime policy
  • You want the simplest, most straightforward option
  • You’re in good health right now and have a relatively clear family medical history

This type of policy covers you for a finite period of time (usually 10, 20, or 30 years). Because of its temporary nature (and therefore the decreased likelihood that a payout will take place), premiums are generally much lower, especially if you’re young. Once the policy term is over, it’s over…just like car insurance, no matter how long you’ve been insured in the past, if you’re not insured at the time of an incident, it won’t help. So with term life, you’ll need to renew (usually at an increased rate as you grow older) or convert to a whole life plan at some point for continued coverage.

WHOLE LIFE INSURANCE

A whole life policy may be the best route if…

  • You can afford a higher premium in your monthly budget
  • You like the idea of paying for coverage that you know will help your loved ones in the future
  • You love the idea of only having to shop for life insurance once
  • You’re in good health now, but may be at higher-than-average risk for future health concerns based on family medical history

These policies typically cost more up front, but the upside is that they provide lifetime coverage (so you don’t have to worry about shopping again) and typically offer level premiums, which can help you keep your monthly budget on track, especially when the kids start begging for the latest gaming system. Whole life insurance typically combines death benefits with cash value. In some cases, the policy owner can access this cash sum to use if they should need it…so while peace of mind and security for your family are still the primary motivation, you know that it doesn’t have to cost a fortune to get it.

Savvy Shopping

As you decide which option is right for you and your family, here are a few tips to help you keep costs as low as possible while still getting what you need:

  • Get multiple quotes from different providers to find the most competitive pricing. Whether you’re looking for the best term life insurance policy or you’re more interested in whole life insurance quotes, we can do a lot of the work for you at ourlifecovered.com.
  • Watch out for unnecessary riders. Riders are add-on provisions to the basic policy. Sometimes they’re things you might actually need, but sometimes they’re just things that sound good. It’s like when you go to Target for shampoo and laundry detergent and somehow spend $100 on throw pillows and whimsical cocktail napkins.
  • Identify your specific needs and priorities. Life insurance, unlike your buttery soft leggings, isn’t one size fits all. If you’re on a tight budget, maybe you just need basic life insurance that will help to get your family through if you pass away sooner than you would hope. If you have some medical concerns, you may want to look into life insurance with no exam, which costs more, but does exist in both whole life and term life format.

No Time Like RIGHT NOW

Here’s the best advice we can give: DON’T WAIT.

The younger you are, and healthier you are, the less your insurance will typically cost. And the sooner you work it into your budget, the more it will start to blend in with all your other important expenses, like electricity and lattes.

The real reason not to wait, though, might be sitting right next to you on the couch while you read this. Or sleeping upstairs on the top bunk. Or the bottom bunk. Life insurance gives you a chance to take care of the people you love for longer, and that’s worth an awful lot more than your monthly premium will be.

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Written by Our Life Covered

Our Life Covered
If you are ready to determine your life insurance needs contact us today!
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