Difference between Whole Life Insurance and Term Insurance?

[Learners Quest]

A whole life insurance policy has a guaranteed death benefit that remains the same throughout the life of the policy and is good for your entire life. It builds cash value over time and often accumulates interest credited to it. This can be taken in one lump sum or in periodic payments called withdrawals. A term insurance policy, on the other hand, generally provides coverage for a specified period of time, such as 10 years or 20 years. Term policies are more affordable than whole life because they're not intended to last your whole life. The benefit amount is set on the initial purchase and will not change.

Whole Life vs. Term Insurance

There are several different types of life insurance coverage you can purchase. These fall into two general categories: term and whole life insurance policies. There are advantages and disadvantages to each policy, depending on your specific needs. It's a good idea to understand how each policy works so you can decide if one will work best for you or if it's beneficial to combine policies for your protection needs.

 

[Nightmare]

Well , comparing whole life insurance to any sought or type of insurance is just like a wasting of time . thi is because whole life insurance is the best form or type of insurance ever , this is due to it's capacity to last over a person lifetime .
But it still happens to be that tgere are still some individual whom , usually compare term insurance with whole life insurance !
Yeah, term insurance is also a good type of insurance but not as to whole life insurance , this is only as a result of the lasting power , that is ,term insurance only lasts for a short period of time while whole life insurance is Forever .

 

[Mika]

As the word whole suggests, the whole life insurance policy is a type of life insurance policy where the insured person gets covered for his entire life. This insurance policy aims to benefit the nominee of the insured person. This insurance policy is mainly for those people who want their family members to have some financial benefit upon their death. As the word term suggests, this type of insurance policy covers the life of the insured person only for a certain time. The term life insurance policy has a term of 5 years, 10, years, or even 20 or 25 years.