What Is the Difference Between Term and Permanent Life Insurance?
Most people understand that life insurance is an important tool to make sure loved ones are taken care of in the event of death. However, many believe there is only one flavor of life insurance and that the only thing a client decides is the level of the benefits and the associated premiums. In reality, each life insurance company in Connecticut exists to meet a need. Although they offer set packages to help clients make a decision, they have a lot of leeway to tailor a package for each individual. Two of these important packages are term and permanent life insurance.
Term Life Insurance
Many people purchase term life insurance because it is less expensive than permanent, or whole life insurance. Term life insurance is a lot like automobile insurance. There are only payouts in the case of a claim. Term life insurance is a good choice when the need for a policy is temporary. It can be a way to supplement personal insurance during times when financial responsibilities are exceeding income.
Permanent Life Insurance
Whole life insurance is a life-long protection plan. Once a client is approved, timely premium payments ensure that the carrier cannot cancel the policy. Permanent life insurance has a cash value. It can be used as a tax-deferred method of funding retirement. It can also be used for such expenses as the down payment for a home or for college tuition.
Many people take this information, apply it to their personal situation, and then meet with an agent at a life insurance company in Connecticut to help design the right policy for their needs.