Term vs. Permanent Life Insurance Policies

Perhaps your Frederick, MD employer provides group life insurance. Maybe you recently experienced a loss and it got you thinking about your family’s future. Lebherz Insurance can help you determine how much life insurance coverage you need and what type. You have a term or permanent life insurance from which to choose.

Term Life Insurance

A term life policy locks in a specific amount of coverage at a fixed premium rate for a limited time span, typically 10, 20, or 30 years. The premiums usually cost less than a permanent policy for the initial term but increase at the end of the term. If you stop paying the premiums at any point, the policy lapses and your beneficiary receives no death benefit if you die.

A term policy makes a good choice if you want to make sure your beneficiary could pay off a financial obligation that would come due during the term period. Example of this includes paying off a home mortgage or providing for a child’s education.

Permanent Life Insurance

A permanent life policy accrues cash value. It remains valid as long as you pay the premiums. Typically, these policies offer a fixed premium that does not increase.

Permanent policies sometimes require a medical exam when obtained. The premiums do not increase though if your health changes after the exam.

A permanent policy makes a good choice as tools for retirement planning or income replacement. Many contain options to add disability coverage. This means that if you become permanently disabled, you’ll have a ready source of cash to handle financial obligations like medical care.

Call Lebherz Insurance in Frederick, MD today to start planning your life insurance coverage. The younger you are when you obtain coverage, the lower your premiums will be and you’ll never be younger than you are today.