Life Insurance in Aurora, IL
Life insurance is an essential financial product designed to provide financial security for your loved ones after your death. Beneficiaries can receive a payout, known as a death benefit, which can help cover various expenses such as funeral costs, outstanding debts and daily living expenses. There are two primary types of life insurance: term life and permanent life insurance. 
Term Life Insurance
Term life insurance offers coverage for a specified period, usually between 5 and 30 years. You pay regular premiums during this term. If you pass away within this timeframe, your beneficiaries can apply to receive the death benefit. When the term ends, so does the policy; however, some plans may allow you to renew.
Term life insurance is generally more affordable than permanent life insurance. It’s a popular choice for young families or individuals with temporary financial responsibilities like a mortgage or children’s education expenses.
Permanent Life Insurance
Permanent life insurance offers coverage for your entire lifetime as long as premiums are paid. It typically includes a cash value component that grows over time and can be accessed through loans or withdrawals while still alive. Although more expensive than term life insurance, permanent life insurance offers additional benefits, such as the ability to accumulate savings on a tax-deferred basis.
There are various types of permanent life insurance, including whole life, universal life and variable life insurance. Whole life insurance offers fixed premiums and a guaranteed death benefit, while universal life insurance provides flexibility with adjustable premiums and death benefits. Variable life insurance allows you to invest the cash value in different investment options, potentially increasing the policy’s value.
Making the Choice
Deciding between term and permanent life insurance depends on your financial goals, budget, and the needs of your beneficiaries. Term life insurance is ideal for those seeking affordable, temporary coverage, while permanent life insurance may be better suited for those looking for lifelong protection and investment opportunities.
Contact Estrella Insurance Agency today to learn more about available life insurance options.