Term life insurance and whole life insurance policies differ in length of protection and cash benefits. Find out which may be right for you.
Whole life insurance is significantly more expensive, but never expires and comes with an investment-like cash value account that you can use when you’re alive. It can be a good option forhigh-net-worth individuals, people with lifelong dependents,or people withcomplex financial planning needs....
Whether term life insurance or whole life insurance is the best fit for you will come down to your family situation, budget, long-term goals, and other factors. Here are some considerations to help you make the right decision. Level term life insurance may benefit you if: ...
Cashvalue: With whole life insurance, you can possibly get a dividend or withdraw a portion of thecash value(note: it's usually a good idea to allow your money to grow before taking this action). Term life insurance has no cash value. ...
Whole life insurance typically lasts your entire life and can build cash value, which makes it a more complex and expensive product. With either policy, your loved ones can spend the payout however they like, such as funeral expenses, mortgage payments or college tuition. But depending o...
The younger and healthier you are when you purchase life insurance, the less expensive you can expect your premiums to be, whether you choose term or whole life insurance. Your Family’s Financial Needs If you expect your family to be financially secure in a certain number of years, even wi...
Whole life insurance has its own benefits and drawbacks, including: Pros:Cons: Doesn’t expire after a set time Features higher premiums Builds cash value that can be paid out, borrowed against, or cover premiums May have reduced death benefits if policyholder uses too much cash equity ...
In the meantime, term life insurance will still offer important coverage to help protect your family. While the premiums for whole life insurance may be higher, these policies may be the right choice if you also want to add cash value or if you have permanent dependents, such as adult ...
Is term or whole life insurance better? Term life insurance is best if you only need coverage for a specific time and can't afford to pay higher premiums. Whole life insurance is best if you need coverage for the rest of your life. But the best policy for you will depend on your spec...
Another potential drawback of whole life insurance is its complexity. With a term policy, for example, you can simply stop making payments if you no longer need the insurance or can't afford it. Also, depending on your carrier, whole life policyholders may face a significantsurrender chargeif...