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
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.