PROTECTING YOUR FUTURE
AMAYA PREMIER AGENCY LIFE INSURANCE
If you are ready to explore your life insurance options or would like more information regarding life insurance, feel free to reach out to our team. With highly professional life insurance agents and years of life insurance experience, the team at Amaya Premier Agency can walk you through everything you need to know about choosing a life insurance policy.
What Is Life Insurance?
Life insurance is a contract between an insurance policyholder and an insurer. This contract states that the insurer promises to pay a designated beneficiary a certain amount of money in the event that the insured person passes away.
When shopping for life insurance, you are going to be presented with two different options, term life, and whole life. Depending on the age and needs of the insured person, one might be a better choice than the other.
What Is Term Life Insurance?
Term life insurance gives you coverage for a fixed period of time. If you purchase a 10 or 20-year plan and you die during that time, your insurance will payout. If you outlive your policy, your insurance does not payout and your beneficiaries do not receive money.
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When You Should Choose Term Life
There are a few instances where you will want to choose term life over a whole life policy. This will include:
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Those who only want life insurance to cover a short-term need
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Those wanting a more affordable coverage
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Those who may want whole life but cannot afford it at the time
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Those who don’t want to use life insurance as an investment vehicle
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What Is Whole Life Insurance?
Whole life insurance is the most common type of permanent life insurance and will cost more than term life insurance. This type of policy will give you lifelong coverage and will payout regardless of when you die.
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When You Should Choose Whole Life
For most people, whole life insurance is going to be the life insurance policy that they choose. Whole life insurance is best for:
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Those who can comfortably afford the higher premiums
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Those who want to leave money for their beneficiaries
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Those who have lifelong dependents such as a child with disabilities
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Those who want life insurance that builds guaranteed cash value
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What Happens To Term Life Insurance At The End Of The Term?
Term life insurance is a temporary policy, which means your coverage expires once your term is up. If you still need life insurance, you can purchase a new policy, though you can expect to pay higher rates.
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What Are The Disadvantages Of A Whole Life Insurance Policy?
The main disadvantage is the cost. Whole life insurance is often significantly more expensive than term life insurance because it offers lifelong coverage and becomes a cash asset over time.
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Can You Cash Out A Term Life Insurance Policy?
No, term life insurance doesn’t have a cash value. If you want a policy that builds value over time, look into permanent life insurance.