What is the difference between Whole Life Insurance and Term Life Insurance?
Morgan
Dallas TX.
Well Morgan,
With Term Life Insurance it provide a certain amount of coverage for a set number of years. Your premium never changes with in that time frame. Usually this type of life insurance policy has a lower monthly cost . In the event of your death, the policy pays your beneficiary the amount of the policy.
Where as Whole Life Insurance pays a death benefit whenever you die — even if you live to 100. The premiums tend to be more expensive in order to make up for the increased length of coverage. These policies can also allow for a cash accumulation which is available for the policyholder to withdraw after a certain time.
Which insurance policy is right for you? That depends on your situation. Term Life insurance is great for young adults that have mortgages and other debts. Thsi will cover you if you are the breadwinner and something happened to you untimely death.
Whole Life Insurance is more expensive to cover the length of the policy. And is usually used in addition to other retirement plans they may own.
Hope this helps in your decision and thank you for asking a great question.