Life Insurance – Term vs. Whole Life 

It’s not always easy to decide which type of life insurance suits your long-term goals and current budget. Two common options are term life and whole life insurance. While they both offer a death benefit, their structures, costs and purposes differ significantly.

What Is Term Life Insurance?

Term life insurance may provide coverage for a set number of years. If the insured passes away during this time, the beneficiaries can apply to receive the death benefit. Once the term ends, coverage stops unless it is renewed or converted.

This type of insurance is often selected for temporary needs like covering a mortgage or providing income during child-rearing years. Term policies are often more affordable than whole life.

What Is Whole Life Insurance?

Whole life insurance is a type of permanent life insurance. It remains in force throughout the insured’s life as long as premiums are paid. Apart from the death benefit, it has a cash value component that can grow over time. A portion of the premium goes toward building this value, which can be borrowed from or withdrawn, according to the policy’s terms.

While more expensive than term life, whole life insurance doesn’t expire and can become a long-term financial asset.

What Does Life Insurance Cover?

Life insurance may provide financial benefits that can be used by the beneficiary for any reason, including the following:

• Funeral and burial expenses

• Outstanding debts

• Daily living expenses

• Future education costs

• Business obligations such as loans or partner buyouts

• Income replacement for the policyholder’s household

• Final medical bills not covered by health insurance

Get Covered Today

Explore affordable life insurance plans with B R Taxes and Insurance. Our agents can help you understand your options and secure your ideal policy. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.