What Is The Difference Between Term, Universal And Whole Life Insurance? (Loveland, CO)

The difference between term life insurance, universal life insurance, and whole life insurance is simply this: Term insurance, you want to think of like a lease on an apartment. You buy it for a specific period of time. If you happen to die during that period of time, your loved ones get the money. Just like in a lease, if you rented an apartment for a year, at the end of the year, you can't go to the landlord and ask, I would like some of my equity back from the rent I've been paying. The only choice you have is to renew the lease and continue living there and paying the rent, or moving away. Same thing is true with term.

With universal life insurance and whole life insurance, it is more like owning a home. You buy the policy, it's designed normally to last your entire life and protect you, your family and loved ones against your death whenever it occurs. An added benefit of universal or life or whole life insurance is simply this - they build cash value along the way, much like your home would build equity as you make your monthly mortgage payments on it. If you want to keep your premiums very, very low, you will buy term policies. If you don't mind investing a little bit more and having a good rate of return on these, the equity, you will consider universal life or whole life.

We’d be happy to review your insurance coverage options with you! Give us a call at (970) 667-2145 or visit https://weedinagency.com.