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.