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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.
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.