Term vs. Whole Life Insurance

You want to be responsible in life and in death. The world of life insurance, though, is quite confusing. An associate at Wasatch Preferred can always help you understand the details of a policy. Use this guide, however, to get a general overview of life insurance options in Sandy, UT.

Whole Life Insurance

Whole life insurance is usually what buyers think of the moment that life assurance becomes a subject. This type of indemnity plan offers:

  • Fixed Premium Rates

  • Guaranteed Coverage In Death

  • Deferred Cash Value

Many policy owners take advantage of the deferred cash value perk, which allows individuals to take cash out on the policy to pay for emergency expenses and other things. Imagine yourself reaping the benefits of investing in a life insurance plan while you are still able to see the perks. Such is the case with whole life insurance.

Just as with any advantage, whole life assurance comes with its stipulations. You must remain current on all of your premium payments to reap the benefits of deferred cash value. Additionally, you may not be able to cash out portions of interest whenever you deem necessary as the money must first accrue.

Term Life Insurance

You can just call term life insurance the option for the frugal. This type of indemnity plan does not offer guaranteed coverage in death and may fluctuate in premium rates depending on your age. Term life insurance also does not offer deferred cash value. You are only guaranteed coverage in death if you pass on while the policy is in place.

Some people view term life insurance as a waste of money. The option, however, comes with various advantages, which include:

  • Cheaper Premium Rates

  • In some cases, guaranteed coverage

  • The possibility of coverage without having to undergo a medical exam

Those with pre-diagnosed medical conditions may be shut out of the realm of whole life insurance. Term assurance opens the door to a life indemnity plan for those who have bee rejected.

The agents at Wasatch Preferred can help you find the life insurance policy that best matches your lifestyle in Sandy, UT. Call them today for a quote!