Understanding Term Life Versus Whole Life Insurance

With life insurance, there are many different terms that get thrown around. Two very common terms are Term Life and Whole Life insurance. When selecting your Connecticut life insurance policy, it’s important to understand the difference between these types of insurance and how each can benefit you.

 

Term Life

 

Term life insurance covers you for a set amount of time as specified in your policy. Much of the time, this type of insurance plays out like other insurance. You pay your premium, and that’s all. At the end of your term, you can usually opt to do another policy for another specified term. Some policies may offer you a return of premium, where you would get your premiums back if you outlive the term.

 

Whole Life

 

Whole life is generally more expensive, but you build cash value that you may be able to borrow against later. Whole life is a lifelong investment that might help some people to have peace of mind about their family’s future.

 

Get What You Need

 

The type of Connecticut life insurance policy you select is entirely up to you and your needs. While term life insurance is generally great for most people, some people might feel comfortable with a whole life policy that has no time limit and builds cash value. Talk to an agent and consider your personal needs above all else when selecting your policy.