What is the Difference Between Term and Whole Life Insurance?

Unfortunately, funeral costs and fees are very expensive, and can be a financial burden on most families. That is why it is very important to purchase some type of life insurance policy that can help out with the expenses. There are two types of life insurance policies available, which are whole life and term life insurance.

Knowing the differences between term life and whole life insurance policies will help you determine which type of coverage is more suitable.

There are several differences between the two plans:

Term Life:

• Only covers the policyholder's death (Once the policy expires, you are no longer covered).




• The policy does not accrue any cash value.




• Coverage only lasts between 1 to 20 years.

Whole Life:

• Builds cash value




• Covers entire lifespan




• Lower interest rates

Before choosing between term life and whole life insurance plans, please take into consideration certain factors, such as debts owed, living expenses. Do not be afraid to question any potential insurer about the pros or cons of whole life vs term life, they are more than willing to explain how each coverage works.