Choosing between term life and whole life insurance depends on your financial goals and coverage needs. This guide breaks down the differences and helps you decide.
Term Life Insurance
- Covers a set period (e.g., 10, 20, or 30 years)
- Lower premiums
- No cash value
- Best for those needing coverage for a specific time (e.g., until kids graduate college)
Whole Life Insurance
- Lifetime coverage
- Higher premiums
- Builds cash value that you can borrow against
- Best for estate planning and lifelong financial security
Which One Should You Choose?
- If you need affordable coverage for a specific period, choose term life.
- If you want lifelong coverage with an investment component, choose whole life.
Final Thoughts
Both policies have advantages. Term life is ideal for those on a budget, while whole life provides lifetime benefits and financial security.