What Is Whole Life Insurance vs. Term Life Insurance?

At a glance, the difference between whole life insurance and term life insurance comes down to the cost and length of the policy, but there are some nuances to both types of coverage. The most important thing is that you have the coverage you need in place if the unexpected happens. 


What Is Whole Life Insurance? 

 
Whole life insurance is designed to last for the policyholder’s lifetime and will pay out regardless of when the person dies. It will not expire unless the policyholder stops making payments. Whole life insurance can also have a cash value component that increases based on contributions from the policyholder’s premium. Once enough cash is built up, the policyholder can borrow against the account or surrender the policy for cash. a hand holding a baby


Who Needs Whole Life Insurance? 


Whole life insurance may be a good option if you meet any of the following criteria: 

  • You can afford higher premiums  

  • You want to leave money to your heirs or other beneficiaries  

  • You have a lifelong dependent, such as a child with disabilities  

  • W ant life insurance that builds guaranteed case value  



What Is Term Life Insurance? 


Term life insurance is only in effect for a fixed period, commonly 10, 20 or 30 years. Short term insurance will only pay out if the policyholder dies during the term. If they outlive the term and the coverage ends, their beneficiaries will not receive any money. When the policy reaches its term, the policyholder must reapply for a new policy if they want coverage to continue. 


Who Needs Term Life Insurance? 


Term life insurance may be a good option if you meet any of the following criteria: 

  • You o nly want life insurance to cover you for a specific period of time  

  • You want more affordable coverage  

  • You think you might want permanent life insurance but can’t afford it right now  

  • You don’t want to use life insurance as an investment  



Life Insurance Quote in Loveland, OH 


If you want to learn more about life insurance and which policy is right for you, contact Wilber-Price Insurance Group. We are committed to helping you find the coverage you need. 


This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 

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