top of page
Writer's pictureAgile Financial Services

Term life insurance policy vs. whole life insurance policy?

Updated: Feb 1

What are the main differences between term life insurance and whole life insurance?

Which type of insurance should I buy term or whole life

The choice between whole life insurance and term life insurance depends on your individual needs, financial goals, and budget

Whole life insurance and term life insurance are two primary types of life insurance, and they differ in several key aspects.

  • If your looking for life time coverage, cash value growth, and estate planning benefits start with whole life insurance

  • If your looking for affordable temporary coverage during specific times in your life choose term life insurance

Term life insurance vs whole life insurance

What are the differences between term life insurance and whole life insurance

Whole life insurance and term life insurance are the two main types of life insurance. They they differ in several key aspects. Here are the main differences between whole life insurance and term life insurance:


The purpose of term life insurance vs whole life insurance

Term life insurance is primarily used for temporary coverage needs, such as income replacement during working years, paying off debts, or providing money for education

Whole life insurance is primarily used for lifelong coverage, tax planning, estate planning, for final expenses, or as an investment and savings tool

How long does term life insurance vs, whole life insurance last

How much does term life insurance vs whole life insurance cost

Death benefit payouts for term life insurance vs whole life insurance

Cash value of term life insurance vs whole life insurance

Investment components of term life insurance vs whole life life insurance

Renewable and convertible features of term life insurance vs whole life insurance

Does term life insurance vs whole life insurance have any surrender value?


How to choose between term life insurance and whole life insurance?

  1. How much life insurance coverage do you need?

  2. How long do you need the insurance for? Decide the number of years you need coverage to last? Do you need life insurance for a short time or long time?

  3. How much can you afford? Your budget decides the amount of your monthly premiums

  4. Do you want a savings and investment component? Do you need or want a savings component in an accumulating cash value?

  5. Why do you want Life Insurance?

  6. Do you want or need additional features? Such as policy customization to include disability and critical illness riders?

  7. If you cancel do you want additional cash surrender value or return of premium?








11 views0 comments

Recent Posts

See All

Comments


bottom of page