In Rockville, MD, Wellspring Insurance Network Inc. can guide you through the essentials of life insurance policies. When you are ready, you’ll be able to understand the basics and make a decision that is right for you and your family.
Life insurance is a contract between you and your insurance company that states you will maintain your premiums and your beneficiaries will receive death benefits after you die. There are two main kinds of life insurance – term life and whole life.
Term Life Insurance Policies
Term life insurance sets a specific amount of time (term) and while you pay the premiums at a fixed rate for that period. If you die during this term, the company will pay out your benefits to your beneficiaries as long as your premiums are up to date. Terms can be 5, 10, 15, or more years. At the end of the term, you can cancel the policy or set up a new one. The premiums may have increased over the years, and you won’t be able to pay your original amounts.
Whole Life Insurance Policies
Term life is less expensive than whole life insurance, but whole life covers your “whole” life. It not only pays death benefits, but it also gives your beneficiaries a cash value of the insurance. This is an accumulated amount. A cash value matures after 12 to 15 years of continuous payments. Whole life, unlike term life, is guaranteed. It’ll be paid out as long as your premiums are in good standing.
The Rockville, MD insurance agents at Wellspring Insurance Network Inc., can offer you opportunities to sort through the life insurance coverage you will need. They are also available to help you with coverage concerning your home, auto, business, boat, or other insurance policies you would like to establish.