Term Versus Whole Life Insurance Policies

Term Life vs. Whole Life Isurance

Term Vs Whole Life Insurance

Many people who are shopping for a life insurance policy are still confused by the difference between whole and term life! This is one fundamental thing to understand in order to purchase the right type of coverage. Lucky for us, it is actually pretty simple.

Permanent Policies

The first type of life insurance was whole life. Sometimes it is called straight or ordinary life. The name pretty much sums up one major difference between it and term. It will cover a person for their WHOLE LIFE as long as the policy is kept in force. There is no expiration date. Most of these policies do say they will remain in force until age 100, or some advanced age like that. At that time, they will pay out the death benefit even if the lucky insured person is still alive.

You May be Paying Too Much for Insurance
Compare Top Insurance Company Rates

Whole life policies also can grow a cash value over time. This cash account may be useful too. It means it can be borrowed against, cashed in, or even used in settlement transactions. But of course, these permanent policies are more expensive than term.

Temporary Policies

Term, on the other hand, does have an end date. It may be 20 or 30 years in the future, but the policy will still end. It does not, in general, have any money value beyond pure insurance, and that is only while the policy is still in force. There are some hybrids or additional riders that can change this, but this is generally true.

Which Is Best – Whole or Term?

So you must decide which type of lfe insurance policy would be of more use to you! If you are just trying to cover yourself for a period of time, even if it is a few decades, you will find that term lfe is cheaper! If you want permanent protection, you need permanent coverage. 

 Sometimes you can have it all though. You may choose to buy a larger term policy for your current needs, and then purchase a smaller permanent policy to cover you during your retirement years. That way you won’t have to decide between term or permanent policies!

If you enjoyed this post, make sure you subscribe to my RSS feed!

Related posts:

1. What Is Whole Life Insurance? Define Whole Life Insurance Permanent Life Insurance – The policy...
2. Universal Life Insurance Explained What is Universal Life Insurance? Universal life is the newest...
3. Best Quotes Term Life Insurance in the US Why Look For The Best US Term Life Insurance Quotes...
4. Single Premium Whole Life Insurance Policies Single Premium Whole Life Are you planning for a secure...
5. Life Insurance For Older Americans Why Do Older Americans Buy Life Insurance? You may think...

Related posts brought to you by Yet Another Related Posts Plugin.