Term vs. Life Insurance

January 13, 2016

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Have you had a conversation about life insurance with your family yet? If so, are you contemplating which plan is best for you: term or permanent? If you answered yes to either of these questions, here’s some information that you might find beneficial as you begin exploring your options:

Definitions

Term Life Insurance: Term life insurance offers protection for a specific number of years. This option appeals to those aiming to ensure coverage for specific financial responsibilities, like mortgages or college expenses.

Permanent Life Insurance: Permanent life insurance provides lifelong protection, as well as the ability to accumulate cash value on a tax-deferred basis. Unlike term insurance, a permanent insurance policy will remain in force for as long as you continue to pay your premiums.

If you decide on a permanent policy, you have the security of knowing that you are always covered and have protection for as long as your premiums are paid. It also provides other benefits, like the possibility of borrowing from it depending on your policy. Also, because it is a lifelong policy, your payments may become more affordable over time.

If you decide on a term policy, you know that you owe a defined amount, as well as exactly how long you have coverage. You can choose the amount of time you want your policy to last, and should you feel that this is the best option for you, you can renew it when time runs out.

Choosing life insurance might feel like a tough task to accomplish, but with Latorre Insurance, it doesn’t have to be. Our agents will help guide you to a policy that is best for you. Just like life insurance, we’re here to help keep you protected for many years to come!