Whole and Term Life Insurance – What’s The Difference?

Unsure of whether to get whole life insurance or just term life insurance? Maybe you never knew that there were multiple types of life insurance and want to learn more? Check out the article below for more details!

Let’s start with whole life insurance. Whole life insurance is lifelong coverage that builds cash value that you can use while you’re living. The benefits are guaranteed cash value and benefits in exchange for fixed payments. It unfortunately does not offer any flexibility.

Term life insurance, unlike whole life insurance, offers more flexibility than whole life insurance. You typically pay lower fixed payments since you are only covered for a specific time period. Some companies have the option of extending and converting the coverage later on in your coverage plan. However, it does not offer guaranteed cash value like whole life insurance and converting your coverage can increase payments.