There are many misconceptions about life insurance. Most people think that life insurance helps bury the dead, i.e., funeral expenses are covered. Depending on your own experience with life insurance, this policy can mean many things to many people.

Perhaps you’ve had it before, and it was a small payment when bundled with a current car or home insurance policy, or maybe you recently lost a parent who had a life insurance policy, and you received a sum of money from it. Although there are many more advantages to having this type of insurance policy, the benefits can seem confusing as there are two main kinds of life insurance policies.

Whole Life Insurance Policies Ohio

One of the most notable differences is whole life insurance versus term life insurance. Whole life insurance, also known as permanent life insurance, includes the following:

• It never expires as it provides lifetime protection.
• The premiums are usually more expensive than term life insurance, but the premiums are fixed.
• You have flexibility with choosing how to pay your fixed premium, monthly, quarterly, or annually.
• Whole life insurance also has cash value growth on a tax-deferred basis.
• The death benefits are also intended to be tax-free.

Term Life Insurance Policies Ohio

When it comes to term life insurance, the policy includes the following:

• It is only for a set period of time.
• This type of insurance is cheaper, although the premiums can increase with age, depending on the carrier.
• Cash value growth is not available under a term life insurance policy.
• The death benefits are also intended to be tax-free.

So as you can see, there are a few similarities between both policies, but whole life insurance goes a long way compared to term life insurance. Term life insurance can also be extended as needed, but it will still be costlier.

How Can Life Insurance Benefit Me?

Another common misconception is that life insurance isn’t suitable for those who are single and have no children. These types of life insurance policies can help support yourself during retirement, protect yourself if you’re disabled or injured, and build wealth.

If you’re unsure which policy is best for you and during this current situation, we advise you to take baby steps.

Let’s think of whole life insurance like the equity value in a home. When you can’t afford the home of your dreams, the next best thing is to put money down into a lovely starter home; and this helps you build wealth. In the same relation, a whole life insurance policy can begin with small monthly premiums, and over time, you’ll be able to afford more benefits as you increase the premiums.

With the proper guidance, life insurance policies in Ohio should be affordable and easy to navigate. Contact us today at 740-687-5733, or visit our page for further information regarding the purchase of life insurance in Lancaster Ohio.