Determining If Term Or Whole Life Insurance Is Right For You

Every adult have thought about getting life insurance once in their present life. Some have acted on it and some have not. There are some people just waiting for the right time to purchase a policy. Is there a right time to buy life insurance? The answer is ” No” .  You should always expect the unexpected. You never know when you might lose a love one, lose your job or become disable.  It’s always better be prepared than unprepared.  The main topic that most people are confused about is the difference between term life and whole life insurance. Most of people have a hard time determining which policy is better for their situation. Below, you will find the difference between the two.

What Is Term Life Insurance?

Term life  provides insurance coverage at a fixed rate payment for limited period of time. Once the period has expired, your current monthly premium is not guaranteed. You have the option to cancel the policy or continue the policy with different conditions and monthly premium. Term life also pay the face amount to the beneficiary for when the  insured die. It is cheaper than whole life insurance. You can buy a term life policy from one year to 30 years. Keep in mind, term life insurance doesn’t build cash value.

If you’re under the age of 50 and in good health, monthly payments for term life is real cheap. It gets more expensive over the age of 50, but still cheaper than whole life insurance.

What Is Whole Life Insurance?

Whole Life is a life insurance policy that offers protection and a level premium for as long as you live. Unlike term life, whole life insurance builds cash value. It combine a term life policy with an investment component. Its more expensive than term life. This is due to you are paying for the investment portion and protection. Most agents call whole life insurance retirement plans.  There are three types of whole life insurance ( universal, variable & traditional whole life) .  With whole life,  your premium paid to the policy won’t increase. That is only if you pay your premium on time and don’t let your policy laps.

In conclusion, if you’re looking to get life insurance for retirement purposes, whole life insurance is the way to go. Most people go with term life insurance because it fits most people situation. If you’re looking to get whole life insurance or term life insurance, make sure your shop and compare insurance rates. Make sure you understand what you’re getting before making a decision.


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