What is Whole Life Insurance?

Whole life insurance is a type of permanent life insurance that provides lifelong coverage if premiums are paid. In addition to the death benefit, whole life insurance builds cash value overtime which can be borrowed against or withdrawn. Premiums remain fixed and the policy offers a guaranteed payout to your beneficiaries making it a stable and predictable financial tool for long-term planning.

What is Term Life Insurance?

Term life insurance offers coverage for a specific period, such as 10, 20, or 30 years. If the policyholder passes away during the term, a death benefit is paid to the beneficiaries. Term life is generally more affordable than whole life insurance because it does not accumulate cash value and only provides coverage for a limited time. It’s ideal for those seeking temporary protection, such as during their working years or until a mortgage is paid off.

Difference Between Whole Life and Term Life Insurance

The key difference between whole life and term life insurance is the duration and value of coverage. Whole life insurance offers lifelong protection with a cash value component while term life insurance provides coverage for a specific period without cash value. Whole life premiums are higher but offer long-term benefits, whereas term life is more affordable and suitable for short-term needs. Choosing between the two depends on your financial situation, goals, and the type of security you want to provide for your family.