Term life insurance is one of the two main types of life insurance, along with whole life policies. A term life policy works very differently from a whole life policy. This type of policy has advantages and disadvantages. For many people, the advantages weigh out, and they choose this type to protect their families financially when they are gone. When you want to get started with life insurance, give us a call at DGIA LLC in Round Rock, TX.
The Active Period
Term life insurance gets its name from the specific term during which the policy is active. An active term of time is specified at the beginning of the policy. This is the number of years that the policy will be active. Once that number of years passes, the policy will expire. This expiration date is something that some people find to be a disadvantage, but these policies also come with a significant advantage. Term life policies are much less expensive than whole life policies. That makes them affordable to many families who wouldn’t otherwise be able to afford life insurance.
The Death Benefit
When you have a term life policy, one death benefit amount is paid to the policyholder’s beneficiaries once the policyholder is gone. If you have a whole life policy, a cash amount can be borrowed and deducted from the death benefit. There’s no need to worry about this with a term life policy. It will always have the same death benefit associated with it. This can give beneficiaries peace of mind, knowing they will be cared for.
Get Life Insurance in Round Rock!
You need a life insurance policy to keep your family protected. Call DGIA LLC in Round Rock, TX, to get started with this coverage.
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