When it comes to life insurance, the choice between term and permanent policies can be a tough one. Term life insurance is designed to provide protection for a specific period of time, while permanent life insurance offers lifelong protection. Understanding the differences between the two types of coverage can help you decide which type of policy best meets your needs. So, the team at Capretta Insurance Agency has put together a short, comprehensive guide to walk you through the different types of insurance.

Understanding Term Life Insurance

Whether you live in Parma, OH, or another part of the country, term life insurance is an affordable option that provides coverage for a set number of years—typically 10, 20, or 30 years. It pays out upon death if it occurs during the specified term but does not build up cash value over time as permanent policies do. This type of policy is ideal for those who want to protect their family’s financial future in case they pass away unexpectedly.

Pros and Cons of Term Life Insurance

The main advantage of term life insurance is that premiums are usually lower than they are for permanent policies, making them a more affordable option. However, the coverage ends once the specified term expires, and no cash-value benefits are associated with it.

Understanding Permanent Life Insurance

Permanent life insurance provides lifelong protection as long as you pay your premiums. This type of policy accumulates value over time, providing an additional financial benefit in addition to the death benefit payout upon death. It’s typically more expensive than term life but can be a good choice for those looking for lifetime protection or hoping to build wealth over time.

Pros and Cons of Permanent Life Insurance

The main advantage of permanent life insurance is that it provides lifelong coverage and can build cash value over time. This makes it a good option for those who want to leave money for their heirs or build a retirement fund. However, premiums for these policies are usually much higher than they are for term-life policies, so you’ll need to consider whether the extra cost is worth the added benefits.

Reach Out To Us

When deciding between term and permanent life insurance in Parma, OH, there are several factors to consider, such as how long you need coverage and how vital building wealth is to your financial plan. At Capretta Insurance Agency, we understand that every situation is different and will work with you to find a solution that fits your needs. Contact us today to get started!