Understanding Term vs. Whole Life Insurance
Term life insurance offers protection for your family for a specific period of time, while whole (or permanent) does not expire.
63% of employees worry about the financial security of their families in the event of their premature death3
Life insurance is a cost-effective way to protect your family and finances. Should something unforeseen happen to you, it helps ensure that short- and long-term financial obligations can be met.
If you have a spouse or a family (domestic partner and/or children), they may rely on you to help keep the household running. Life insurance gives you confidence that your family would be financially prepared without you to handle expenses.
Life insurance comes in two main types – term and permanent – which may both be available through your workplace.
Term life insurance pays a specific lump sum to your loved ones, providing coverage for a specified period of time – typically until a change in active employment status (e.g. retirement, change in employers). If you stop paying premiums, the insurance stops. Term policies pay benefits if you die during the period covered by the policy, but they do not build cash value. They may also give you the option to port, meaning you can take the coverage with you if you leave your company.
Permanent life insurance policies do not expire. They are intended to protect your loved ones permanently, as long as you pay your premiums. Some permanent life insurance policies accumulate cash value. That means the value of the policy may grow each year, tax-deferred, until it matches the face value of the policy. The cash can generally be accessed via loans or withdrawals, and can be used for a variety of purposes. This type of policy is typically portable so coverage can continue if employment terminates.
Consider a permanent insurance policy if you want:
Getting life insurance through work can be an easy way to protect your family. If your employer offers a group plan, consider signing up for advantages that may include:
All you have to do is sign up, and sometimes enrollment is automatic.
Everyone is different, but it may be more than you have now. The insurance you need changes as your life changes — for example, getting married, starting a family or buying a home may change the type or amount of coverage you need. Many people are surprised to learn that they may not have enough life insurance to cover the many expenses their loved ones will face.
It’s simple to determine the amount of coverage you may need now. Just go to www.metlifeiseasier.com to calculate how much life insurance may be right for you.
It may be less expensive than you think. MetLife’s group life insurance plans are an economical way for you to provide for your family with competitive group rates and a wide range of coverage options to choose from. Exact rates can be found in the enrollment materials.
Contact your employer for more information.
1 Like most group life insurance policies, MetLife group life insurance policies contain certain exclusions, limitations, exceptions, reductions of benefits, waiting periods and terms for keeping them in force. Please contact your company’s benefits administrator for costs and complete details.
2 In the event you retire or leave the company you may have the option of taking your coverage with you.
3 MetLife’s 17th Annual U.S. Employee Benefit Trends Study, 2019 Availability of products and services is based on MetLife’s guidelines, group size, underwriting and state requirements. Like most insurance policies and benefit programs, insurance policies and benefit programs offered by Metropolitan Life Insurance Company and its affiliates contain certain exclusions, exceptions, waiting periods, reductions of benefits, limitations and terms for keeping them in force. Please contact MetLife for complete details.