When purchasing life insurance, you will be offered whole life insurance and term life insurance. Whole life insurance covers you your entire life, as long as you keep making the payments. Term life insurance covers you a set period of time, such as for the next 10 years or until you reach the age of 50, and then the policy expires. One of the questions that people frequently ask us at Cross Creek Insurance, serving Hope Hills, NC, is when is term life beneficial. Here is some information on the benefits of term life insurance.
When Money is Extremely Tight
If money is currently very tight, term life insurance may be beneficial to you. Term life insurance is often cheaper than whole life insurance policies. This type of plan can help you to get life insurance coverage at a time when you may think that you cannot afford life insurance coverage.
When You Know Your Debt Will Be Paid Down
Another time when term life insurance can be beneficial is when the expiration of the policy coincides with major changes in your life that ensure your debt will be less. Some people carry term life insurance and have it end when their children will be out of college and/or their home will be paid off. You need less money at this time, so may not need a large life insurance policy when your debt is paid down.
When you are trying to obtain a life insurance policy, it is important to understand whether you are buying whole or term life insurance and what the benefits of each option are. Here at Cross Creek Insurance, serving the greater Hope Hills, NC area, we can help you find the right type of life insurance for you. Get started today!