For those shopping for life insurance, the terminology can be confusing. Why are there two types of insurance, and how do you know which one is right for you? If you're trying to decide between whole and term life insurance, we can help you figure out which is best for you.

Whole Life Insurance

The major benefit of a whole life insurance policy is that it builds cash value. You are not only investing in a financial death benefit, but essentially a savings plan. As long as premiums are paid, this policy remains in force, regardless of your age or health status. You can access the funds through loans or withdrawals if needed. Premiums are higher than a term policy, but remain constant.

Term Life Insurance

A term life insurance policy typically has much lower premiums, but they do increase at specific milestones. There is no cash value in these policies, and the only benefit is the amount of the policy upon the death of the insured. In some cases, when a term life insurance policy is set to expire, it can be renewed another term or transferred into a whole life policy.

So what kind of insurance do you need? Those with financial stability looking for an investment, as well as an insurance policy, may choose whole life insurance. But many young people, especially those with children, who feel their needs are outpacing their income may be better served by a term life insurance policy. A term policy can also supplement a permanent (whole) one for a specific period of time.

Life insurance can be a confusing topic, so much so that many people simply put off making a decision about it. This is probably the worst thing to do, because taking no action may result in leaving loved ones in financial straits. If you need life insurance and have additional questions, contact your independent insurance agent. A qualified agent can help you decide which policy is best for you.

Get a free quote today. Call Merritt Hall Insurance for more information on life insurance.