How Whole Life Insurance Works

When it comes to life insurance, there are two main types- term and whole life. Both have their pros and cons, and both can provide great coverage. If you are thinking about getting a whole life policy, we’d love to talk to you. Call us at Holmes Insurance Services in Youngsville, NC.  

How Whole Life Insurance Works

Lifelong Protection

When you get a term life policy, it’s good only for the specific term of the policy, often 20 or 25 years. When you get a whole life policy, it can cover you for the rest of your life. When you get a policy, it is good for as long as you live- as long as you keep paying the premiums. This is a great way to lock in coverage when you’re younger so that you don’t face a hard time getting insurance when you’re older. 

Building a Cash Value

Another thing that people love about whole life policies is that they build up a cash value over time. As you continue to pay for your premiums, after a few years a part of the profits made by investing your premiums gets put into a cash value for your policy. This is an amount that you can then borrow against. When policyholders get into a financial bind and need cash, these policies can certainly come in handy. When the policyholder borrows against that cash value, that amount is subtracted from the eventual death benefit until the amount is paid back. 

Get a Whole Life Policy

If you need a life insurance policy, getting a whole life policy is a good choice for many people. If you want to learn more about these policies and get started, call us at Holmes Insurance Services in Youngsville, NC to talk to an agent about a policy of your own. 

 

What Is the Difference Between Term Life Insurance and Permanent Life Insurance

When shopping for life insurance, you will learn there are two main life insurance policies: term life insurance and permanent life insurance. Both of these policies provide financial protection for your family; however, they differ in premium costs, total coverage, and length of coverage. When shopping for life insurance in Youngsville, NC, you want all of your life insurance questions answered. The experts at Holmes Insurance Services can help answer those questions and find you the best life insurance policy for your family’s financial needs.

Term Life Insurance

Term life insurance typically provides a more affordable life insurance option; however, these policies only cover you for a specific term length. Term lengths are stated in the policy and typically cover you for 10, 15, 20, 25 years, or any other length you select. 

Permanent Life Insurance

Permanent life insurance provides coverage for your entire life, as long as you continue making premium payments. This policy also has a cash value that is not available with term life insurance policies. If needed, you can borrow against your policy’s cash value to help pay for your retirement or other financial emergencies. 

Differences in Premiums

Term life insurance tends to be the less expensive option; however, your premium rates are calculated by several factors. These factors may include the policy type, the death benefit amount, term length (term life policies only), your age, and your overall health. Additionally, the company you purchase your life insurance policy from affects the overall premium costs. 

When shopping for life insurance in Youngsville, NC, reach out to Holmes Insurance Services to discuss your different options. Our agents can help you determine which life insurance policy is the best for your family’s future financial needs.