Term Life Insurance vs. Whole Life Insurance: Keys and How to Choose

Most term life insurance policies are term, which means your policy expires once the term ends. If you still want life insurance, you can purchase a new policy, but you can expect to pay higher rates. There are instances where your policy would possibly continue, such as if you

Convert to a Permanent Insurance Policy

before the deadline set by your insurer.

Term life insurance tends to be less expensive than whole life insurance because it offers a term policy rather than permanent and creates no monetary value.

No, term life insurance has a monetary price. If you need a policy that will generate price over time, take a look at

Permanent Life Insurance

.

The best

Life Insurance Policy

For you, it depends on your wishes and budget. Generally, term life insurance is sufficient for as many people as possible. You may need to explore whole life insurance if you’ve maxed out your tax-advantaged retirement accounts or if you have a lifetime dependent, such as a child with special wishes.

Term life insurance is temporary. It provides a policy for a set number of years, such as 10, 15, or 20, and will pay death benefits if the policyholder dies during that period. Whole life insurance usually lasts a lifetime and has an additional charge.

Cash Value

component that gains over time.

On a note. . .

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