Understand the Difference to Make the Right Choice
Life insurance isn’t one-size-fits-all. Depending on your goals, you may want protection-focused coverage or wealth-building coverage. Choosing the right type ensures your policy meets your family’s needs and financial goals.
1. Life Insurance for Protection (Term Life)
- Purpose: Provides financial security for your loved ones in the event of your death.
- Coverage: Pays a death benefit to beneficiaries to cover expenses such as:
- Mortgage or rent
- Education costs
- Family living expenses
- Debt repayment
- Cost: Typically more affordable because it only provides coverage for a specific term (e.g., 10, 20, or 30 years).
- Ideal For: Young families, those with dependents, or anyone needing a large amount of coverage for a defined period.
Key Advantage: High coverage at a low cost to protect your family’s financial future.
2. Life Insurance for Wealth Building (Permanent Life)
- Purpose: Combines death benefit protection with a cash value component that grows over time.
- Coverage: Provides lifetime protection and the ability to access cash value through:
- Policy loans
- Withdrawals for emergencies
- Supplemental retirement income
- Cost: Higher premiums than term life because of the cash value component and lifetime coverage.
- Ideal For: Those looking to build tax-advantaged savings, leave a legacy, or supplement retirement planning.
Key Advantage: Long-term financial growth and flexibility, along with lifetime protection.
Which One Is Right for You?
- If your goal is affordable coverage for a specific period, term life may be the best fit.
- If your goal is long-term wealth accumulation and lifetime protection, permanent life insurance may make sense.
- Many people use a combination of both to balance protection and growth.
Work With Bridgeway Insurance Group
At Bridgeway Insurance Group, we help clients choose life insurance strategies that fit their goals, family needs, and financial plans. We compare options across top carriers to find the best coverage at the best value.
Bridgeway Insurance Group - Insurance that protects your loved ones and builds financial security for the future.