Term life insurance versus term life insurance and why you want a mix of both.

GREENSBORO, NC – When a household loses a family member, there is the grief and sadness of missing that loved one. Add to this the reality of living without that member’s income or value to the family and this is where life insurance comes in.

“Most of the time I meet with families who say, ‘I want to make sure that my family can have a similar standard of living when I’m not here, I still want my kids to want to go to college, still have them in the house live, ”says Jeff Jackman of Northwestern Mutual in Greensboro.

Jackman explained the difference between Whole and Term. Well there are more details but in simple terms:

Life insurance is like buying a home. You make payments, you build up equity, you can borrow for them. It never expires and your family receives a death benefit. Life insurance is more expensive.

Term life insurance is cheaper. It’s like renting a house. You make payments for a certain period of time. You are insured for the duration of the policy. Once the policy expires, you have to renew it, and that can be difficult.
That can be tricky.

“People overlook how fragile insurability is. My mother is a breast cancer survivor. She couldn’t get a good rate when she extended because of previous illnesses, ”said Jackman.

He says the best scenario is to have a mix of full insurance coverage and risk insurance.

“When a client’s budget allows for both Term and Whole, most of the time comes from Term, but you also have something permanent so you don’t have to take the risk of having to reapply when you are 50 is something that will be permanent “said Jackman.

However, he would like you to speak to an insurance professional to see what your goals are and how the coverage matches.