When selecting the best life insurance to protect your Willoughby, OH loved ones, you must first weigh the pros and cons to help narrow down your options and needs. The two most common life insurance policies are term life insurance and whole life insurance.
Listed below are the pros and cons for both term life insurance and whole life insurance. When done reading, if you still have questions, give us a call at The Merhar Agency LLC.
Term Life Insurance
Term life insurance policies range from five to 30 years, depending upon the term selected. Some pros for term life insurance include:
- Very affordable when compared to other life insurance plans
- Easy to understand plans
- Renewable (in some cases)
- A portion of your paid premiums may be paid back to you if you outlive the policy terms (or given the option to change to a whole life insurance plan)
Some cons for term life insurance include:
- Hold no cash value
- Many plans require a physical and health questionnaire to determine eligibility
- Coverage limited to term’s lifespan
- If you outlive the policy, premiums on a new policy may increase
Whole Life Insurance
Whole life insurance is permanent insurance that covers you for your entire life, and the policies accrue cash value. Some pros to whole life insurance include:
- Lasts your entire life
- Premiums do not change as long as they are paid
- Policies build cash value that can be borrowed against while still living
- Very useful for estate planning
Some cons of whole life insurance include:
- More expensive than term life insurance
- It can be challenging to understand
- The investment component of the policy may not be needed
Life insurance is a way to help your family after your passing to adjust to their life without your financial support. It is always a good idea to speak with someone about life insurance options available in Willoughby, OH. Give us a call at The Merhar Agency LLC to discuss your life insurance options.