How Whole Life Insurance Works

Understanding Whole Life Insurance

Most people need to leave something behind once they’re gone to beneficiaries to make life easier for them. It’s important to have life insurance to take care of this need. There are two main ways that you can be covered – with a term life insurance policy or a whole life policy. There are major differences between these two types of policies. Many people choose whole life policies because they offer some benefits that term policies don’t. When you’re interested in getting life insurance, you can turn to us. Just contact us at EasTex Insurance in Tyler, TX.

Whole Life Lasts Your Whole Life

The name whole life comes from the fact that these policies last for your whole life. While term life insurance policies expire after a certain number of years, a whole life policy never expires, no matter what age you reach. Many policyholders get these policies for this very reason. Instead of getting another policy someday, you can get this one and keep it to the end of your life.

Cash Value

Another advantage of a whole life policy is that it will slowly build up an amount known as its cash value. This amount takes a few years to start accumulating, but it keeps growing over time. With this amount in place, you can borrow it if you ever find that you need to. This can be a good source of peace of mind as policyholders know they will have access to cash in a financial emergency. This could be an important source of funds when it’s most needed.