Whole Life or Term Life Insurance: Choosing the Best Option for You

Paper family of four under a Life Insurance paper cutout umbrella

When you go to sign up for the perfect life insurance plan, you must weigh your personal needs, family status, and budget constraints to find the best option. Through every life stage, you will have the opportunity to choose between whole life and term life coverage – Or even a combination of those two plans. Understanding the differences in coverage, and the factors to consider as you weigh your options, will help you make the right choice now and in the future.

Understanding Coverage Differences

Term life insurance plans allow you to pay into the system in exchange for death benefits for your beneficiaries. Whole life insurance, on the other hand, offers those same benefits in addition to acting as an investment system you can use to build your estate. You can also withdraw or borrow the funds from your whole life insurance plan, but to enjoy these benefits, you will pay more in premiums than required for a term life plan.

Factors to Consider

Beyond assessing your personal investment strategies, you must consider a few key factors to choose between term and whole life insurance coverage. You will need to look at your age, health status, finances, and family needs to determine which plan will best serve your current and future needs. Upon starting a family at a young age, for example, you may benefit from low premiums associated with a term life plan. If you prefer to begin building your estate early, however, whole life insurance may work better for your situation.

Weighing Your Options

Upon determining which plan serves your needs best, you can start weighing your options to ensure you are selecting the absolute best type of life insurance coverage. You should look at the required monthly premiums to ensure you can work them into your budget every month to avoid losing your coverage.

If you want to invest in your future, but are uncertain about affording a full coverage whole life plan, consider splitting your needs across both types of plans. You can always adjust the coverage levels as you age to shift from more term coverage in early adulthood to additional whole coverage in later years. With this approach, you can ensure the coverage levels provide the right mix of financial security through every stage of your life.

Take the Steps to Acquire Your Perfect Life Insurance Plan

If you are ready to sign up for whole life or term life insurance plans, or both, contact our team at Schertz Insurance Agency at 940-891-4803 to schedule an appointment. We will help you find the appropriate types of insurance and levels of coverage you need now and through every life stage. Our team looks forward to helping you navigate this process from beginning to end.