Insurance can be a confusing subject, and at Christensen Insurance in Susanville, California, a local agency, we want to clear up some basic questions for you. Most families put some type of life insurance in place, and figuring out whether they should buy “whole life insurance” or “term insurance” is the big question. These are very different insurance products, each with pros and cons.

1. 1. Term life insurance is cheaper, but doesn’t build up an asset you can borrow from or access for illness or disability.Most young families live on a carefully managed budget, and may not have the capacity – yet – to purchase whole life insurance. The premiums you pay cover you for a period of time (the term) and in many cases, can later be converted to whole life insurance, which can create a valuable asset for you.

1. 1. Whole life insurance protects you for your lifetime, and term life is only for a period of time, usually 10 years. A whole life insurance policy builds up value over the years you pay into it, and has a guaranteed cash value. Some whole life insurance policies will give you benefits beyond life insurance – called living benefits. You can borrow out of your own insurance policy if you need to, as well as access payments if you face a terminal illness or disability. Each policy provides different benefits, and you need to find the one that is best for you. Generally, whole life insurance is a much better investment (as it builds up value for you), but if you have limited funds, term is a great interim solution to protect your family.

1. Term life insurance will have increasing premium payments if you renew, while whole life insurance will have level payments, often with the premium payments at a guaranteed level for the entire life of the policy.

Making a decision about what type of insurance to buy will be based on your financial situation, and your overall savings plan. One of our local team from Christensen Insurance would be happy to meet with you and show you the various types of options available that could suit your situation. New types of plans come on the market now and again, and it is worth getting us to do the work to find the best deal currently available. As we are located right here in your community, it is easy to connect with us and we are always on call to answer your questions. Let us know what you need!