Term Life Insurance vs. Whole Life Insurance
The differences between term life insurance and whole life insurance come down to three primary factors: cost, coverage length and cash value.
Term life insurance is the more affordable of the two but has an expiration date and doesn’t include a cash value feature. Whole life insurance is more expensive but it provides lifelong coverage (as long as the premium is paid) and builds cash value over time. We can help you find the right policy to fit your needs so contact us today for a no-cost consultation.
Reasons why you should choose term life insurance:
- You’re looking for low-cost coverage: Term life generally offers lower premiums compared to whole life and can be customized to work with your budget.
- You don’t need lifelong coverage: If you only need financial protection for a certain number of years, say while your kids are still dependent on you or until your mortgage is paid off, then term life insurance may be the right fit for you.
- You want to supplement a whole life policy: Depending on your specific situation, it may make sense to take out a separate term life policy to supplement a whole life policy in order to cover larger debts, such as a mortgage. Your beneficiaries could then use your whole life policy’s payout to cover other expenses.
Reasons why you should choose whole life insurance:
- You want a policy that builds cash value: A whole life policy with cash value gives you greater financial flexibility, and you can also use it to pay your premiums.
- You want or need lifelong coverage: Since it lasts for your lifetime, whole life insurance is more suitable for end-of-life planning, such as covering funeral expenses and leaving an inheritance for your children. You can also use whole life insurance to provide funds for loved ones who will need ongoing care, such as a child with a lifelong disability or an elderly parent that you support.
