It’s always worth exploring what type of life insurance will benefit you and your family. Life insurance ensures that your dependents won’t worry about living expenses. If the pandemic has taught us anything, it has shown us that life can be unpredictable. People make a common mistake by only thinking about life insurance when they’re older or experiencing a critical illness. Preparedness is always the best “policy.” Let’s look at the difference between term and permanent life insurance.
Term Life Insurance
Age affects the cost of a life insurance policy, but you most likely won’t pay more than $30 a month for this plan. As its name suggests, this policy only lasts for a specific term or period. This type of plan typically lasts no longer than 40 years and is the more affordable insurance option. The risk of a term policy is that it can expire before the policyholder passes.
Permanent Life Insurance
This plan never expires and includes a guaranteed cash value. The cash value is the part of your policy that earns interest and allows you to withdraw money against your policy in case of emergencies. Lifetime coverage coupled with the cash value makes the premiums of permanent policies more expensive. If you choose this plan, ensure that you have a consistent income to avoid nonpayments.
How to Choose Between the Two
The #1 factor will be what you can afford. A term policy could save you money if you have enough savings to cushion your dependents or fund your retirement. However, if you have children with disabilities or have a disability yourself, a permanent solution will be better. After all, it can provide coverage for chronic illnesses and offset medical expenses. People also choose permanent life insurance to pay off outstanding debt. When in doubt, always talk to a benefits representative to explore your options.
Why Employees Need Life Insurance
If your business doesn’t offer this policy, it should. Not every company offers this, and you want to stand out from your competition. You can use this to leverage your recruiting process. When you provide comprehensive benefits, it showcases a conscientious effort. Tenured employees might seek new employment, and potential new hires could decline employment offers if your company only offers bare minimum benefits.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.