It can be difficult to understand the differences between life insurance policies. When it comes down to it, there are two options: term and whole life. As with anything, there are pros and cons to each. Review the information below to learn why term insurance may be better for your situation.
A Quick Primer on Term Insurance
There are a few characteristics that indicate that a policy is term life insurance in San Francisco, CA. Term insurance covers a policyholder for a set period. It is common to see this expressed in terms of 10, 20 or 30 years. This means that if you die within the selected period, your family members will receive the proceeds of the policy. Due to the set amount of time, term life insurance tends to be cheaper than other types of policies. However, the amount of the premium will depend on the total value of the policy.
Other Facts About Term Life Insurance
There are some aspects of term life insurance that may not work for you. For example, this type of insurance doesn’t accumulate a cash value. It also does not offer dividends on an annual basis. Finally, term life insurance in San Francisco, CA, will not cover you after the expiration of the term. Therefore, if you are looking for true, lifelong coverage, you are better off with a whole life policy. Be sure to understand the risks before buying a term life policy.
Making Your Decision
For many people, term life insurance is sufficient. It provides an economical way to protect your family’s financial future. Just make sure to understand what the policy provides before signing up.
For more information about your life insurance options, contact Pennbrook Insurance Services Inc.
