Term Versus Whole Life Insurance

A simple comparison

When thinking about buying term versus whole life insurance, keep in mind that your needs will be very different from that of your retired, grandmother of 6, next door neighbor.

While searching for permanent and term quotes you may be tempted by cheap premiums but read on to realize what you're really getting.

Check out an example on how the two policies can vary pricewise on Term vs Permanent life insurance here.

A policy that works for one person may not be suitable for another. You really need to be “matched” with something that is just right for you. Lucky for you there are lots of options out there!

Just a little side note…

Whole life is just one of many policies that falls under the very general category of Permanent life.

So really… you can say "term vs permanent life insurance", but for the sake of simplicity we will just refer to whole insurance when comparing - since it is one of the oldest policies.

Term versus Whole-
A breakdown of the main differences

Term

• Term provides coverage for only a specific time period (Ex: 20 year term life insurance)
• Does not build cash value
• Term life insurance cost is low. Usually offers very inexpensive premiums for a large death benefit.
• Your premiums will increase as you get older.

Whole (Permanent)

• Whole life will usually cover you for a lifetime (100 years or more)
• Will build cash value over time
• Typically higher premiums
• You are locked in with the premium you signed up for

As always, when weighing the differences between term and permanent life insurance speak to a knowledgeable agent and put them to work for you!

They can help you decide which is more suitable according to your needs.

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