Posted on: July 6th, 2015 by The Accel Group | No Comments


Protecting your family and insuring your life is an extremely important decision. Life insurance is used in case of the policy holder’s premature death to:

  • Replace income lost
  • Pay a mortgage or outstanding debt
  • Fund children’s education
  • Cover medical and funeral expenses
  • Create an emergency fund
  • Fund a special needs family member

The death benefits of a life insurance policy cover the above situations in a variety of circumstances. For individuals with families, valuable assets, or outstanding debt, a life insurance policy provides protection from financial upset in the case of death.

Continue reading to learn more about whole life insurance and term life insurance. The Accel Group wants to help you make an informed decision about your life insurance policy. For further questions contact an Accel Group agent today.


Whole Life Insurance

Whole life insurance is permanent long-term coverage that pays a benefit to a beneficiary when the insured individual dies. Whole life insurance coverage has level premiums that make a whole life policy good for supporting long-term goals. Level premiums of a whole life insurance policy do not increase so long as they are continually paid.

One important benefit of whole life insurance to consider is the fact that premiums paid towards a whole life insurance policy collect towards both a cash value and a death benefit. Similar to a savings account, the cash value of a whole life insurance policy collects interest. These benefits do not decrease in value unless the insured individual borrows against them or withdraws the cash value from the policy.


Term Life Insurance

Term life insurance provides protection against death for a predetermined amount of time. For the amount of time stated in the policy, or term, individuals receive temporary life insurance protection. Term life insurance typically includes high amounts of coverage at a low premium. Premiums and benefits remain level until the end of the term. Term life insurance is typically purchased in situations when individuals need more coverage than in other times in their life. For example, individuals may purchase term life insurance if they have a large mortgage to pay or children’s education to fund.

At the end of the term life insurance policy, individuals normally have the option to convert part or all of the policy to permanent insurance or to renew it for another term at a higher premium.


Which policy is best and how much do I need?

Depending on factors such as an individual’s age, number of children, amount of income of spouse, amount of debt, and other important factors, either whole life or term insurance can be a better choice.

A professional agent at The Accel Group in Eastern Iowa can help determine your life insurance needs and answer questions you may have about what policy is best. To contact The Accel Group, complete the form here.