Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The primary difference between whole life insurance and term insurance is the length of time that the company will be obliged to pay a death claim. If you search for a mortality curve you will see that most people die when they are older. This means that if the company promises a death claim for a short period of time, they are unlikely to pay a death claim. This is term insurance. A whole life policy pays the death claim whenever it occurs and spreads the cost over the lifetime of the insured.
Whole Life covers you for your entire life. It is considered a permanent policy. Term Life Insurance is just that, insurance which covers you for a period of time or a term. The terms can be as little as 1 year up to 30 years depending on what you need the coverage for.
Whole Life is more expensive however there may be more value for you.
Talk to your broker or let me know if you would like to see the specific differences as it pertains to you.
President, Lane Independent Agency, Southern California
Do you want to rent or buy your life insurance? Do you want to be without life insurance after a specific number of years and have to start all over again searching and hoping you qualify? That is what Term is. Whole Life is yours forever. Just pay the premiums. No requalifying. It builds up cash value. Term is gone when you stop paying. No equity buildup. Thank you. GARY LANE. 714 4229616
Whole Life covers you for your "whole life". Term Life covers you for a term, or set number of years.
Whole Life has cash value that can be utilized while you are still alive. Term Life does not (except for Term with living benefits, which allows you to use part of the death benefit if certain triggers are met).
Whole Life allows you to pay the entire premium at once, or in a limited number of years, after which no more premiums are owed. Term Life requires that you make periodic payments over the entire duration of the policy.
If you drop a Whole Life policy after some length of time, you will usually have a reduced paid up policy that you can keep without making further premium payments. If you drop a Term policy, your coverage ends and you do not have any return of cash (unless you buy ROP, or return of premium Term Life).
With participating Whole Life, you may get dividend checks over the years. With Term Life, the only benefit you get will be if you die before the term ends.
Whole Life costs more because it is a permanent product and has cash value in addition to death protection. Term Life costs less because it is temporary and offers pure death protection.
Independent Insurance Broker, Quote Me 4Life Insurance, Inland Empire, CA
Life insurance that is kept in force for a person’s whole life as long as the scheduled premiums are maintained. All Whole Life policies build up cash values. Most Whole Life policies are guaranteed as long as the scheduled premiums are maintained.
Term insurance is the type of life insurance that provides protection for a specified period of time. It usually has no real cash value build up. They do have term policies that will return all of your premiums back to you at the end of the term period if you out live the policy.
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Whole Life is more expensive however there may be more value for you.
Talk to your broker or let me know if you would like to see the specific differences as it pertains to you.
Whole Life has cash value that can be utilized while you are still alive. Term Life does not (except for Term with living benefits, which allows you to use part of the death benefit if certain triggers are met).
Whole Life allows you to pay the entire premium at once, or in a limited number of years, after which no more premiums are owed. Term Life requires that you make periodic payments over the entire duration of the policy.
If you drop a Whole Life policy after some length of time, you will usually have a reduced paid up policy that you can keep without making further premium payments. If you drop a Term policy, your coverage ends and you do not have any return of cash (unless you buy ROP, or return of premium Term Life).
With participating Whole Life, you may get dividend checks over the years. With Term Life, the only benefit you get will be if you die before the term ends.
Whole Life costs more because it is a permanent product and has cash value in addition to death protection. Term Life costs less because it is temporary and offers pure death protection.
Term insurance is the type of life insurance that provides protection for a specified period of time. It usually has no real cash value build up. They do have term policies that will return all of your premiums back to you at the end of the term period if you out live the policy.