Life Insurance – Term Versus Whole Explained

For most people looking at life insurance, term versus whole policies can be confusing. I’ll make it all understandable in this short article.

Whole life insurance offers protection for your entire life. Most policies continue coverage to age 100 and if you are one of the few fortunate people to attain that age, the insurance company will actually send you a check for the full face value of the policy, which is called a policy endowment. Premium payments that you make for the policy are guaranteed to remain the same and to never increase or decrease. The death benefit of the policy never increases or decreases either.

Whole life insurance policies are also an investment. Along with providing a death benefit, the policy also provides what is referred to as a living benefit. The living benefit is that whole life accumulates cash value in much the same way that a savings account accumulates funds. Interest is paid as well. It is not uncommon for someone that has a policy to ”cash in” their policy to receive the cash value that has accumulated. Whole life policies can also serve as an asset and can be used for loan collateral.

Term life policies are designed to provide you with temporary life insurance protection for a specific period of time. They are less expensive than whole life policies, therefore you can get more coverage for less money. They do not however, accumulate any cash value and only provide one benefit… a death benefit payable to your beneficiaries.

No two life insurance companies charge the same amount. is a free tool that you can use to instantly compare life insurance quotes from the nation’s top insurers.

Christy Love is a retired life insurance agent with over 30 years of experience in helping people protect what matters most… their families. As an expert author, Christy enjoys sharing her knowledge of life insurance with the online community.

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