Difference Between Term and Whole Life Insurance


You probably want to ensure that you family is well taken care of, even after your passing. Acquiring life insurance in VA can help you achieve this.

There are generally two types of life insurance: term and whole. Term is typically for a specific period of time and is usual there to pay for a significant cost like your kids’ college tuition or the mortgage. Therefore, you should typically choose a policy term that ends after significant dates like your children’s college graduation or after the house will have been paid off, since your beneficiaries will usually only receive the benefits in case you pass before the term expires.

Whole life insurance is generally for your whole life, regardless how long that may be. This type of life insurance in VA may be beneficial if you want to leave your heirs some extra money to pay for estate taxes or deal with various funeral expenses. You may also just want to leave your loved ones some financial support after you’ve gone. Another benefit of whole life insurance is that as you pay into the policy, the cash value of the policy increases. This typically allows you to borrow money against your life insurance policy.

Both term and whole life insurance may benefit your family. Which one you choose typically depends on your reason for getting the insurance.