Agent, Rural Mutual Insurance Co., Union Grove, WI
Term life insurance is life insurance that is active only for a set period of time. Typically term life insurance will be active for 10, 20, or 30 years. Term life insurance policies typically do not accumulate a cash value.
Whole life insurance is permanent insurance. It typically will not expire as long as premium payments are made as required. A whole life policy also will normally accumulate cash value over it's existence which could be borrowed from or will in most cases raise the death benefit.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
An insurance company computes a rate for one year of coverage for every age. Term insurance provides coverage for a specific range of years. The premium is roughly equivalent to the average of the yearly premiums that I mentioned. A whole life policy is different in that it takes every remaining age and provides coverage for every remaining year. The premium is higher than a shorter term policy but the death benefit will be paid unless the policy is surrendered or lapses.
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Whole life insurance is permanent insurance. It typically will not expire as long as premium payments are made as required. A whole life policy also will normally accumulate cash value over it's existence which could be borrowed from or will in most cases raise the death benefit.