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Twin Bridges Insurance Agency

1881 Western Avenue, Suite 210
Albany, NY 12203

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What is the Difference Between Straight and Term?

Life insurance is a protection for yourself and your family in the unexpected instance of your death. There are two types of life insurance- whole, which is also referred to as permanent- and term life insurance. Below, find what each one entails, how they are different and what they cover. The two major differences is that term is a policy that is determined for a set amount of time and whole is to protect you for your entire life.

Term Life Insurance

Term life insurance is referred to as "term" because for the time, or "term" that you are paying your premium, you are paying for the cost of your death benefit for your family or beneficiaries. Term life insurance is usually pretty affordable, with premiums averaging around $30 a month for a healthy person in their twenties or thirties. Term life insurance only provides a death benefit. During this time, the insurance company may contest any claim that they feel is fraudulent. Most life insurance holders purchase term life insurance policies for basic life insurance needs.

Whole Life Insurance

Whole life insurance premiums are much higher- up to four times as high- than term ones because they add up to a cash value along with the death benefit in the policy. A portion of the premium is put to the side in savings for each payment, which accrues interest over time and can be borrowed against. Whole life insurance policies are usually better for individuals that have a high amount of wealth, complex financial situations, and /or assets to protect or may need the cash value to borrow against while they are still living.

Contact one of the agents at NY Twin Bridges Insurance Agency to help you understand the ins-and-outs of life insurance. Call or stop by for a free quote today.