Life insurance is designed to provide your family with a financial benefit to help them survive the loss of your income when you pass. You can get one of two types known as whole and term, depending on your needs. At Southwest Insurance Center in Austin TX, we’re here to help you understand the meanings behind these descriptions and how they work. Here’s a look at the differences between the major types of life insurance policies.

A Brief Look at Whole and Term Life Insurance

Both types benefit the people named in the policy, but each have different active time periods. That is, a term policy can last 20 years, while a whole life policy is active for the length of your life. When a term life insurance policy expires, there is no financial benefit. A whole life policy expires upon your passing and pays out its value to your beneficiaries. 

Why do Term and Whole Policies exist?

Everyone has a different reason for needing life insurance. Someone with a young family and is in the early stages of their career is best served by a term life policy as a hedge against calamity. Whole life works for someone who wants to benefit their family and diversify their investment strategy. The type of policy you buy depends on your needs. 

Getting Help With Making a Decision for Your Life Insurance Policy

At Southwest Insurance Center in Austin TX, we know how confusing getting a life insurance policy can get. That’s why we’re here to help you learn more about the different types, how they work, and which one makes the most sense for you. Call us today to speak to one of our agents to learn more about what’s involved with getting a life insurance policy.