What’s The Difference Between Term and Whole Life Insurance?
Are you familiar with the difference between term and whole life insurance? Let me ask this: is your church ready for the next big natural disaster or a fire? Do you have a ministry continuity plan in place? If your church is damaged, what would it cost to rent a new facility for the duration of time your buildings are out of commission? Not only will you need a facility for weekly services, but also for office functions, group activities and perhaps even school and daycare obligations.Are you familiar with the difference between term and whole life insurance? Let me ask this: is your church ready for the next big natural disaster or a fire?
Part of your continuity plan is protecting the people who help your ministry thrive, whether it is the executive staff or just the senior pastor. I often get asked about life insurance for board members and it’s important to know what your options are when it comes to life insurance.
Term life insurance covers a person for a specific amount of time. If a person with term life insurance were to die unexpectedly during the set time period, his or her beneficiaries would get the death benefit. For those with term life insurance, it’s also helpful to have key man insurance for pastors and board members. Key man protects a church if something happened to a pastor or other key person. It works just like term insurance, enrollment is the same as term, but the church is the beneficiary.
Whole life insurance can be more complicated. Whole life insurance may have a monetary investment amount that continues to grow over time. The money is usually held tax free and can be used for other things, much like a 401K, but any money withdrawn must be replaced or it will be taken out of the death benefit.
God forbid your church suffers, but if it does it’s up to us to make sure we are protected. Low rates, such as those in place right now, make it easier to get the coverage that will help best protect your church.
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Feel free to tell us about your experiences with term and whole life insurance in the comments, below.