Whole life vs. term life insurance: what’s the difference?

Term life insurance

  • Is a good choice for growing families and financial commitments.
  • Is designed to provide affordable, high-value coverage for a specific period of time (term) at a lower cost than whole life insurance.
  • Pays a benefit if you die during the policy term.
  • Rates could change over time, depending on the policy.

Whole life insurance

  • Offers coverage you can never outlive.
  • Rates are guaranteed to remain the same throughout your lifetime as long as your payments are made.
  • Builds some cash value over time and allows you to borrow against the value. (Unpaid loans decrease the death benefit and are charged interest.)

Compare whole and term life rates

  • Start with what you want to pay.
  • Use a simple two-step tool to see your options.