The two main types of life insurance are term life and whole life. There are a lot of differences between these forms of life insurance. Some will prefer one type while others will see more benefits in the other type. If you have people who depend on you, you need one of these life insurance types to leave something behind for them. To get started with a policy, call us at Christensen Insurance Group in Sandy, UT to find out more.

The Time Period

One of the most significant differences between these two life insurance types is that term life has an expiration date, and whole life doesn’t. When you have a term life policy, the amount of time the policy will be in effect is stated upfront. After the end date, the policy expires, and you are no longer covered. If you want to be covered again, you have to get a new policy. With a whole life policy, it stays good for as long as you continue to pay for it. As long as you do, the company can’t cancel the policy for any reason. For many people, this gives them good peace of mind.

A Cash Value

When you have a term life policy, it never builds up any cash value. There is no money associated with it that you can borrow against. But with a whole life policy, a cash value will accrue as the year’s pass. This is an amount that you will be able to borrow against in case of a financial emergency. This is another aspect that can bring peace of mind.