I am currently looking for the best life insurance for myself. While doing my research, I cam across whole life and term life insurance. Can you help me explain the difference in whole life and term life insurance? I am from Texas if that would help you.
Greg
San Antonio, Texas
Hello Greg! It’s good to know that you are doing your own research before purchasing life insurance for yourself. So let’s go straight to your question. What is the difference in whole life and term life insurance?
To avoid any confusion on your part its best to remember the key words – term and whole.
The term life insurance is a kind of death protection which is available on a term manner. When you say term, what should come to your mind is “period”. This means that this death coverage only last for a specified period of time – which means it can be for just a period of some years. At present, term life insurance is available on the following terms: 1 year, 5 years, 15 years, 20 years, 25 years and 30 years. Also with this kind of insurance, your premium also increases as you get older.
Meanwhile, with whole life insurance the keyword you should think is “whole” meaning to say it will provide you death protection as long as you are alive or until you have decided to cash in the value of your whole life insurance since this kind of death protection also gains cash value. Unlike life term insurance premium which increases as the policyholder aged, premium for while life insurance does not change or increases at a scheduled value.
For more information about the difference in whole life and term life insurance you can always ask you life insurance broker or agent in Texas. Since you are looking for life insurance, it’s also best to take this time to shop around online by using this website.