It is important to note that term and whole life policies work differently. A whole life policy is a type of permanent life insurance that guarantees a death benefit regardless of when you die as long as you’ve finished paying the policy. This is an excellent choice if you want to cover permanent financial obligations like caring for a disabled child.
Meanwhile, term policies pay a death benefit when you die during the agreed term of the policy. It helps your surviving family when you’re no longer around to provide for their financial needs. Since most people are expected to live longer the policy term, term life premiums usually cost less.
Consider buying both term and whole life insurance if:
- You don’t have the means for as much coverage as you want. Some people combine term and permanent policies to save money without sacrificing coverage. For instance, if you want $500,000 worth of coverage, but you can only afford $300,000 whole life policy. You can add $250,000 worth of term life insurance to maintain the level of benefit for a lower cost.
- You require more coverage over time. Consider getting more life insurance if you upgrade to a larger house or have another child. Keep in mind though that these financial obligations are only temporary. Thus, if you have a whole life policy in place, it would be wise if you only add a life plan on top of it to save on premiums.
- You consider spreading your risk. Although it rarely happens, insurers can go broke. If that happens, your policies are at risk. Thus, it would be smart if you buy multiple life policies from different insurers.
- You need more coverage. If you started with term life insurance but prefer permanent life protection, you can buy one on top of your term policy.
Buying both whole and term life insurance is legal. There’s no limit on how much policy you can hold. If you want two or more policies, you can get them. All you have to do is talk to your agent.
Roper Insurance Services is an independent agency that works with reputable companies that offer insurance products for a reasonable price. We can help you get you a life insurance policy or policies that best fit your situation. You can get free life insurance quote from us by clicking here. Feel free to talk to one of our agents by calling us at (828) 388-1851 or visit us today.