Term or Whole Life Insurance

Considering the possibility of suffering a debilitating injury or an untimely death is obviously something we never want to think about. But in the event that something unfortunate does happen to you, don’t you want to make sure your mortgage is protected? Or, if you have kids, that their college education will still be funded? And, of course you will want to lessen the burden on your spouse.

The whole subject is a scary proposition to consider, but when it comes to choosing a life insurance plan in Livonia, Farmington Hills, Plymouth, Northville or other surrounding cities in Michigan, you must think about what type of plan is best for you.

Whole Life Insurance

Whole life insurance is a policy that remains intact for the insured’s entire life and (in most cases) requires premiums be paid every year of the policy. Premiums paid beyond the cost of the insurance protection are tax deferred and are invested by your insurance company so that money can come faster than in a taxable investment that contains the same expenses or return.

Providing protection for your entire lifetime, a cash value gathers in whole life insurance policies in which the policy owner can borrow against if they so choose. Some of the benefits of a whole life insurance policy in Michigan are:

  • Cash value is built
  • Premiums do not increase as you age
  • You own it and are thus independent from employment or pension plans
  • Clients do not pay taxes on their yearly gain

In most cases, the premiums are higher than term coverage premiums in the initial stages. Whole life insurance provides level permanent protection with guaranteed cash value.

Term Life Insurance

As indicated by the name, term life insurance plans are broken down into periods that can last anywhere from one year up to 30 years. They provide a fixed-rate coverage of payments for which ever period of time you choose. If you happen to pass away during the term, your beneficiaries receive a payout. This is known as the death benefit. After your term expires the coverage at the previous rate of premiums no longer becomes a guarantee and the client has to choose between forgoing the coverage or acquiring further coverage with different conditions.

Some of the benefits of a term life insurance policy include:

  • It is more affordable than whole life insurance
  • In most cases a medical exam is not required
  • Like whole life insurance, you own it so you are independent from employment or pension plans

Term life insurance plans in Plymouth, Canton, Livonia or other Southeastern Michigan areas do not build up cash value. Depending on your health, you may or may not qualify for new coverage once your term ends.

To discuss which type of life insurance policy is best for you, whether it be whole life, term life, disability income protection, or long term care insurance in Livonia Michigan contact GBK Insurance and get a life insurance quote today!

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