Life changes may dictate a change in your existing life insurance policy. If you currently hold term life insurance, considering an upgrade to a permanent life insurance policy might be beneficial. Our agents at Safechoice Insurance Agency in Rochester, MN, break down the reasons below.

Comparing Term Life Insurance and Permanent Life Insurance

Term life insurance is coverage that lasts for a specified period, providing beneficiaries with a death benefit. You’ll need to procure a fresh policy upon expiration to maintain protection. It’s important to note that term life policies do not accumulate cash value.

On the other hand, a permanent life insurance policy offers lifetime coverage, provided the premiums are consistently paid. When compared, permanent life insurance policies give beneficiaries a death benefit and accumulate cash savings that can be borrowed against premiums or any other financial needs.

Why Consider Shifting to Permanent Life Insurance?

Several compelling reasons make switching to a whole life insurance policy attractive. Here are a few:

• Lifetime coverage: If you have ongoing financial commitments, a permanent policy will ensure that death benefits last for your lifetime.
• Accrual of cash value: Whole life insurance policies accumulate cash value over time, which can be borrowed against. This is an ideal feature for those who foresee borrowing against it.
• Fixed premiums: The rates for whole life insurance are usually locked in for the duration of your policy. Note: Failing to pay premiums may increase rates upon policy reinstatement.

Thinking About Converting Your Life Insurance Policies?

It’s crucial to bear in mind that permanent life insurance premiums may be higher than term insurance. However, considering the lifetime coverage and the ability to borrow against the cash value accumulated, it’s typically seen as a superior choice. Contact Safechoice Insurance Agency in Rochester, MN to speak with an experienced agent.