When you need life insurance, it’s important to understand the types of life policies that are available. There are two main types that you can choose from. People usually find that one or the other fits their needs the best. The one that you choose depends on which features you want and how much is in your life insurance budget. When you need a life insurance policy, call us at Parr Insurance Services in Lynchburg, VA.
Understanding the Two Types of Life Insurance
Whole Life Insurance
A whole life policy is one that stays in place for as long as you keep making the payments. It doesn’t have an expiration date. This is a popular type of insurance because many people want to keep their insurance policy for life instead of having it expire and having to get a new one. These policies also come with a buildup of cash value. This is a small portion of the profits that the insurance company makes when they invest your premium payments. This cash value starts after a few years and keeps building up over the years. This amount is there for you to borrow if you ever need to. Many people like having this option and find that it brings peace of mind.
Term Life Insurance
This is a much different type of policy that has an expiration date. These policies will stay good for a specific number of years. After that, you have to get a new policy to stay protected. There is no cash value that builds up with these policies. However, these policies are much less expensive than whole life insurance. For people who have tight budgets, this is often the best choice for affordability.
Protect Your Family
When you need life insurance, you can call us at Parr Insurance Services in Lynchburg, VA to get started.