WHAT’S THE DIFFERENCE BETWEEN WHOLE LIFE & TERM LIFE INSURANCE?

Whole life insurance and term life insurance are two different types of life insurance policies that offer varying levels of coverage, benefits, and premiums.

Whole Life Insurance: Whole life insurance, also known as permanent life insurance, provides coverage for the insured person’s entire life as long as the policy premiums are paid. This policy typically has higher premiums than term life insurance but offers lifetime coverage and builds cash value over time. The policy’s cash value grows tax-deferred and can be accessed by the policyholder during their lifetime through loans or withdrawals. The death benefit is paid out to the beneficiaries tax-free and can also be used to pay off estate taxes or debts.

Advantages of Whole Life Insurance:

Term Life Insurance: Term life insurance provides coverage for a specific period, usually one to thirty years. This policy has lower premiums compared to whole life insurance and does not accumulate cash value. If the insured person dies during the policy’s term, the death benefit is paid out to the beneficiaries tax-free.

Advantages of Term Life Insurance:

In summary, whole life insurance is more expensive than term life insurance, but it offers lifetime coverage, builds cash value, and can be used to pay off estate taxes or debts. Term life insurance, on the other hand, offers affordable coverage for a specific period and does not accumulate cash value. The choice between the two types of life insurance policies depends on the individual’s needs, financial situation, and plans.

If you have questions about Life insurance give me a call (813) 388-8373. I’d be happy to do a complimentary needs analysis for you and help you choose the option that’s right for you and your family.