Term Life Insurance Vs. Whole Life

Having life insurance is a good way to leave everyone prepared for when you are gone. The death benefit that is paid out from one of these policies can prevent economic hardship for your loved ones later. It’s important to keep a life insurance policy at all times, but which one should you choose? There are two main types that can leave your dependents well-protected. If you want one of these policy types in Austin, TX, call us at Frederick Insurance.

Types of Life Insurance

Term Life Insurance

This type of insurance has great benefits as well as drawbacks. It’s a popular type of life insurance because it generally comes with a low price tag. These policies are typically low-priced so more people can afford them, even if they need a lot of coverage. The main drawback is that the insurance only stays good for a specific number of years. When that term is over, the policy ends. Once this happens, you will have to reapply for coverage, and because you’ll be older then, it will come with a higher price tag. 

Whole Life Insurance

When you have whole life insurance, it works differently. It is a life insurance type that doesn’t operate for a set term. Instead, it’s good for the rest of your life. With this coverage, you never have to worry about getting a new policy later. This policy will stay good no matter how old you get. The drawback is that it’s more expensive. However, the policy will build up a value that you can borrow later if you ever need fast cash.

Get Covered With Life Insurance

If you want any type of life insurance, you can call us at Frederick Insurance in Austin, TX.