Life Insurance: Term vs Whole Life

For most people who are shopping for life insurance, one of the first questions they ask themselves is should I buy term life insurance or whole life insurance? Many people don't understand the difference, which could mean they get the wrong type of coverage for their need.

Here is a brief overview of the differences:

You might have heard the expression before- "buy term and invest the difference." People say this because when you buy whole life, it is essentially "forced savings" because you are not only paying for life insurance, you are also setting money aside in a cash value account. Some people like the idea of forced savings and some people prefer to their premiums to pay for life insurance coverage only.

Which type of insurance is right for you?

A big part of your decision on which type of life insurance you should buy depends on your budget. Most people choose term life insurance because it takes care of their life insurance needs and it is the most affordable. Here is an example of the difference in premium cost for a $250,000 life insurance policy for a 45 year old healthy male.

Whole Life: $3,750.00 per year
30 Year Term: $1,850.00 per year

In this example, the premium is double for whole life insurance for the same amount of death benefit. Find out what the difference in price is for you.

Get a free no obligation quote today and compare multiple quotes from the nation's highest rated carriers. Remember that all life insurance carriers have different rates, so it pays to compare.