Term Life Insurance VS Whole Life insurance

When purchasing life insurance, you will need to know the difference between term life insurance and whole life insurance. Today, we are going to discuss what each is and when you should choose each.

What Is Term Life Insurance?

Term life insurance gives you coverage for a fixed period of time. If you purchase a 10 or 20 year plan and you die during that time, your insurance will pay out. If you outlive your policy, your insurance does not pay out and your beneficiaries do not receive money.

When You Should Choose Term Life

There are a few instances where you will want to choose term life over a whole life policy. This will include:

• Those who only want life insurance to cover a short-term need

• Those wanting a more affordable coverage

• Those who may want whole life but cannot afford it at the time

• Those who don’t want to use life insurance as an investment vehicle

What Is Whole Life Insurance?

Whole life insurance is the most common type of permanent life insurance and will cost more than term life insurance. This type of policy will give you lifelong coverage and will pay out regardless of when you die.

When You Should Choose Whole Life

For most people, whole life insurance is going to be the life insurance policy that they choose. Whole life insurance is best for:

• Those who can comfortably afford the higher premiums

• Those who want to leave money for their beneficiaries

• Those who have a lifelong dependent such as a child with disabilities

• Those who want life insurance that build guaranteed cash value