When it comes to choosing a life insurance policy, there are two main types to consider: whole life and term life. Both policies offer different types of protection, which is why it’s important to understand the differences between the two. L M Insurance & Financial Services LLC in Bronx, NY is here to help. 

Here are the specific differences between whole life and term life policies:

First, let’s take a look at what each type of policy offers. A whole life insurance plan is designed to provide lifelong coverage, as long as you continue to pay the premiums on time. Additionally, these plans often offer some additional benefits, such as cash value accumulation and flexibility in terms of how these funds can be accessed.

On the other hand, a term life insurance policy provides coverage for a specific period of time – typically between 10-30 years. These policies do not offer any added benefits like cash value accumulation or flexibility with regard to accessing funds. However, they tend to be more affordable than whole life policies. They may be a good option if you’re looking for temporary protection and don’t need any extra features or flexibility.

When it comes to choosing between these two types of life insurance policies, the most important factor is your own personal needs and goals. If you’re looking for guaranteed lifelong coverage, then a whole life policy may be a good option for you. However, if you only need temporary protection or want to keep costs low, then a term life policy may be a better choice.

Give Us A Call

To decide which type of coverage is right for you is to talk with an insurance professional at L M Insurance & Financial Services LLC today. We proudly serve the Bronx, NY area.  

Life insurance is not the easiest type of insurance to understand, but it may be the most important. Your dependents are counting on you to take care of them in the event you pass away and that is a frightening thought. That is where the agents at L M Insurance & Financial Services LLC in Bronx, NY come in. We will help to familiarize you with the different types of life insurance and how much you need. 

FAQs about life insurance

Why do I need a medical exam to get a policy?

You are a risk to the insurance company. They want to know what your health is so that they know the level of risk you present. When they sell you a life insurance policy, they are gambling that you will outlive the term of your policy.  They need to know all your vitals and things like your weight, and whether you smoke or not will be considered when deciding whether or not to insure you and what your premium will be.

What do you do when the insured dies?

You need to notify the insurance company that the insured has died. You will need to file a claim. You must have the insurance policy number, a certified death certificate, and proof of who you are. It is quite a simple process and rarely takes more than 60 days to process. 

Do I need to insure my children?

No, you don’t need to, but some parents choose to. It is a form of savings and it will last a lifetime and allow your child to be guaranteed to have life insurance even if they have health issues later. It is only good if it is something you can easily afford. 

Contact L M Insurance & Financial Services LLC in Bronx, NY to talk about what your life insurance needs are. 

Most people think insurance is a necessary evil, but it doesn’t have to be. Insurance can protect you from life’s uncertainties and provide for those you leave behind when the time comes. And luckily, there are now many types of policies that offer different levels of coverage with various costs and benefits, as well as many flexible payment plans to suit your budget. In this post, we will explore term insurance and whole life insurance options.

Term Life Insurance

First, let’s explore term insurance because it is the simplest type of policy to understand. A term life insurance policy lasts for a set amount of time (called the "term") and provides coverage for an agreed-upon amount of time. Term life insurance rates are based on your age and health. If you die during your policy term, your beneficiaries will receive the agreed-upon amount of coverage. But if you die after the term is completed, they won’t get anything—because there is no savings component to a term life insurance policy.

Term Life Insurance Pros and Cons

The key benefit to a term life insurance policy is that it offers affordable protection for a set period. The major drawback is that once the policy expires, there is no cash value—so your beneficiaries will not receive anything if you die after the term of coverage.

Whole Life Insurance

Whole life insurance is also known as permanent life insurance because it lasts for your entire lifetime, with coverage having no expiration date. Whole life policies accrue a cash value over time. In fact, you can borrow against the cash value of a whole life policy for emergencies or large purchases. Whole life insurance premiums are higher than those of term life insurance, but the policy provides a guaranteed death benefit. Your beneficiaries will receive at least what you insured yourself for—no matter how long you live.

Whole Life Insurance Pros and Cons

The main benefit of a whole life insurance policy is permanent protection. There are no expiration dates, and you can keep the policy as long as you continue making the required premium payments. The downside of this plan is that premiums tend to be expensive, and if you stop making payments or die before the term expires, there’s no benefit to your loved ones.

Life insurance is a valuable tool to help protect your family and provide them with some sense of stability. L M Insurance & Financial Services LLC in Bronx, NY can provide you with the information you need to make an informed decision on the best type of plan for your situation. Call us today to speak with an experienced professional about term life, whole life, and other types of coverage.