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A term life insurance policy is a temporary life insurance plan with a set time period or "term," during which time the policyholder pays for coverage. Depending on the circumstances, a term life insurance policy can be anywhere from 10 to 30 years long, and once that term expires, the policy expires as well. Term policies usually carry an affordable monthly fee that covers all of the benefits of having this type of coverage.
A whole life insurance plan is permanent and runs until death or other termination occurs (such as when it's canceled). Whole life policies are typically more expensive than term plans but offer greater peace of mind in regards to prospects for your heirs after you're gone because they continue to cover them for their lifetime. What you pay for a whole life insurance policy over the course of your lifetime is used to help guarantee the payment of your beneficiaries' future benefits.
Universal life insurance policies can be permanent or temporary, too. With a permanent policy, the premiums are paid throughout your lifetime to pay for your dependents' future benefits in case you die. With a temporary policy, you choose a term and then pay for that term up front. When it's done, you can cancel it or continue paying for it with other premiums as needed during the term(s).
A whole life insurance plan is permanent and runs until death or other termination occurs (such as when it's canceled). Whole life policies are typically more expensive than term plans but offer greater peace of mind in regards to prospects for your heirs after you're gone because they continue to cover them for their lifetime. What you pay for a whole life insurance policy over the course of your lifetime is used to help guarantee the payment of your beneficiaries' future benefits.
Universal life insurance policies can be permanent or temporary, too. With a permanent policy, the premiums are paid throughout your lifetime to pay for your dependents' future benefits in case you die. With a temporary policy, you choose a term and then pay for that term up front. When it's done, you can cancel it or continue paying for it with other premiums as needed during the term(s).
