Whole life and term life insurance are the two main types. Each has its own advantages and drawbacks, but each is popular because of what it offers policyholders and their loved ones. When you’re looking for life insurance, we can help. Call us at Brittany Olson Insurance Agency LLC in Cloquet, MN.
Duration of Life Insurance
Term life insurance works much differently from whole life. While the whole life lasts for the rest of the life of the policyholder’s life, do this. Instead, it’s good for a certain term of time. This is the period in which the policy will be in effect. The policy expires after this time, generally a set number of years. After that, the policyholder has to apply for a new life insurance policy to be covered again. With a whole life policy, there is never an expiration date. You can keep this type of policy for as long as you want it.
Cash Value
Another big difference between these types of life insurance is the cash value. Term life insurance doesn’t have a cash value but costs less than a whole life policy. Many people get term life for this reason. A whole life policy builds a cash value over the course of years until there is a substantial amount that you can borrow from as needed. For some people, having that cash value in case of an emergency gives them peace of mind. For others, the lower cost of term life is what they would rather have.
Get Life Insurance in Cloquet
Whether you’re interested in term life or whole life insurance, we can help you get started. To find out more about these policies, call Brittany Olson Insurance Agency LLC in Cloquet, MN.
