To determine how much life insurance you need, consider where you are in your life. If your children are still at home or your spouse depends on your income for support, term life may be your cheaper option. However, if you are looking for potential income and an opportunity to borrow against your policy, whole life might be better. Agents at Fida Insurance Group in Monroe, CT can help you determine which policy is your best option.
Basically, your term life insurance premiums secure a death benefit for your loved ones if you die during unexpectedly during a certain time period, called a term. Whole life also provides a death benefit to beneficiaries. However, whole life insurance also offers a cash value that you can use or that increases the death benefit.
Term Life Insurance
Term life insurance has no cash value. While the policy is active, a death benefit goes to your survivors if you die. If the policy expires while you are still alive, no death benefit is paid. This makes term life cheaper than whole life. Many parents buy term life while their children are young. In 20 years, or whenever the policy expires, the kids have finished college and can support themselves, so the need for life insurance diminishes. Ask your Fida Insurance Group representative in Monroe, CT to set up an appointment to obtain a quote.
Whole Life Insurance
Whole life insurance protects you until you pass away. For a much higher premium, you ensure that your loved ones receive a payout upon your death. In addition, the policy accumulates cash value that is available for loans. Some use this as a retirement planning tool since you can borrow against the cash value in an emergency.
How much life insurance you buy will depend on how much you want to leave to your survivors as well as how much you can afford the premiums. Call Fida Insurance Group in Monroe, CT for advice on how much life insurance to purchase or come to the office to receive a quote.