Most men and women purchase life insurance to protect their immediate family members from financial hardship when the person dies. Others name a charitable organization as the beneficiary to provide a substantial donation. Independent insurance agents in Springfield, OR help prospective clients understand the differences between various types of policies and select what’s best for their needs.
Choosing an Amount
People with dependent children often choose a large amount so that the family can continue without financial difficulty if a parent passes away. Another use for a policy is to pay for funeral expenses. That could be the decision if there are no dependents or spouses, or if the spouse would be financially comfortable without those benefits.
Main Types
Insurance agents in Springfield, OR can explain the features of the two main policy types.
Whole Life
Whole life premiums cost more because the policy accumulates savings, thus increasing in value. Eventually, the policyholder can stop paying premiums, but the insurance is still valid.
Whole life insurance has certain other advantages too. Clients can borrow from the policy and pay the money back as they so choose. A policyholder can have a rider included allowing for withdrawing money. Some companies offer riders that allow a portion of the balance to be used for long-term care. All of these options let policyholders use the money while they are still alive.
Term Life
This option is more like car insurance. The policy’s worth is always the same and does not grow. If the policyholder stops making payments, the coverage ends. It cannot be used for any purpose while the person is still living.
Details on JC Insurance Group can be viewed at web.
