Term vs. Whole Life Insurance

When it's time to compare life insurance, you'll be considering two options: term vs. whole life insurance. So how do you decide between term vs. whole life insurance?

The most basic form of life insurance is term life insurance. Term life insurance buyers choose coverage lasting a certain length of time, called a term. For example, your term life insurance plan may cover you for 10, 20, or 30 years. This is important to note when you compare life insurance because death benefits are only paid if the insured dies during the coverage period.

Whole life insurance has two components - basic life insurance and an investment. With whole life insurance, the life insurance component covers your death for the entire time you have coverage. A part of your monthly whole life insurance premium is invested and builds cash value over time. When you compare life insurance, keep in mind that you can cash out your whole life insurance policy upon cancellation.

Compare life insurance the right way. Educate yourself so you have a good understanding of term vs. whole life insurance. Term life or whole life - empower yourself with the knowledge to compare life insurance and choose the best policy for your needs.