When you visit Insure It All for life insurance coverage, your agent asks you if you want term or whole life. How do you know how to answer? Read on to learn the essential difference between term and whole life insurance.

Term Life Insurance

Most insurance agents recommend term life insurance for individuals up to the age of 40 years. That’s because a term policy only covers loss of life for a finite period, such as 10 years. A 20-year-old Idaho Falls, ID resident has little risk of death, so a 10- or 20-year term life policy offers appropriate coverage during its term. If a person buys a 20-year term policy and then dies within the term period, for example, at 38 years of age, the policy pays the death benefit to the person’s beneficiary.

Whole Life Insurance

A whole-life policy covers an individual from the moment of the policy’s purchase until death. If the individual purchases a policy at age 45 and then dies at age 99, the whole life policy pays the person’s beneficiary.

Why Choose Term When You’re Younger?

The life insurance industry recommends term policies up to the age of 40 because of the reduced risk of death and the less expensive premiums. Agents recommend that younger individuals purchase the cheaper term policies and then invest the difference between the cost of the term policy and a whole-life policy. This process helps the young person save money and establish their investment or retirement account.

Contact Insure It All to Purchase Your Life Insurance

Contact Insure It All, serving Idaho Falls, ID, for the life insurance you need to protect your family’s future. You can ensure that your death doesn’t negatively impact your family’s finances. Call us today to get started.