If somebody asked you about the difference between term and whole life insurance, could you tell them? If not, we don’t blame you. Life insurance can seem overwhelming, but it doesn’t have to!
An easy way to think about term vs whole life insurance coverage is comparing them to the idea of renting or owning a home, where term life insurance would be "renting" and whole life insurance would be "owning."
Term Life Insurance
- Good for a specific period of time, such as 10, 20 or 30 years
- Premiums are generally lower than those for whole life insurance
- Ideal for those wanting protection for a certain amount of time
- What you pay for the policy won't go up for that specified term, although the longer the term, the higher the cost
Whole Life Insurance
- Remains in effect your entire life as long as you pay the premiums and don't surrender or cancel it
- Lifelong protection as long was you pay your premiums
- You can accumulate a cash value
- Most often, the cost or premiums of the policy is guaranteed for life - so it won't change