You’ve been told again and again that you should invest in some type of life insurance policy. Now that you’ve started shopping for a policy, though, you are feeling a bit overwhelmed because you don’t understand all of the life insurance lingo. That’s okay because here at Keller Insurance Services, we are here to simplify finding a policy that can best meet your needs. For now, let’s take a look at what it means to buy a whole or term life policy in West Deptford, NJ.

What does it mean to buy a term life policy?

When a person invests in a term life policy, this means the policy itself is only good for a specific number of years. A lot of term policies are good for 30 years or less. If the policyholder does not pass away during this period of time, then the policy ceases to exist and there is no cash value for the policyholder to take advantage of. And while this is a downside to a term life policy, it does have an upside — term life insurance is incredibly inexpensive when compared to most whole life insurance policies.

What does it mean to buy a whole life policy?

When you invest in a whole life policy, this means you are buying a policy that does not cease to exist until you (the policyholder) passes away. And when you do pass away, the payout is passed down to your beneficiaries. Also, with a whole life policy, a cash value will build up throughout the life of the plan, meaning if you want to tap into the premiums you have invested, you can. Since a whole life policy is guaranteed to pay out, it tends to be quite expensive.

If you would like to learn more about whole and term life insurance, please contact Keller Insurance Services serving the West Deptford, NJ area today.