At The Smith Insurance Group Inc., we understand the importance of life insurance to your family’s future. You may not have yet paid off your home in Sandy, UT, or your children may have just started school. Life insurance can help you pay for those things after you’ve died.
You’ve got many choices of life insurance products, though, and that can make it a tough decision. You need to determine if you want term or whole life insurance.
What does that mean, you ask? The difference between the two policy types comes down to the period they cover.
A term policy refers to one that remains active during the specified period it covers. Typically, this refers to a period of 10, 20, or 30 years. The policy remains active if you pay your premiums during this period. If you die during the term of the policy, it pays your beneficiary the amount of money named in the policy.
A whole policy or whole life insurance is one that remains active throughout your life as long as you pay the premiums. Some whole-life policies let you purchase the coverage outright, so you pay the equivalent lump sum of the average number of years the typical policyholder pays into the policy. If that’s 30 years of premiums, that’s what you pay. Others require monthly or quarterly premium payments.
Contact The Smith Insurance Group Inc., serving Sandy, UT, for more information on life insurance. Let us help you find the ideal policy for you, whether you need a term or whole-life policy.