Should You Buy Term or Whole Life Insurance?

Choosing the Right Type of Life Insurance

Are you shopping for life insurance protection?

If so, you may be wondering which type of policy will best meet your needs – Term or Whole life insurance.

When it comes to life insurance choosing the right plan is the most important decision you will make to guarantee your loved ones have the protection they need when they need it, and remain within your family’s budget.

It makes no sense to buy a life insurance policy you can’t afford to keep should your finances change, and then you are left without financial security for your family when they need it most.

That’s why your budget – How much you can afford to spend each month on your life insurance – is a very important consideration when choosing the right plan.

Key Issues to Consider

What goals do you want your life insurance to accomplish?
How long do you need life insurance?
How much life insurance do you need?
What can you afford to spend for your life insurance?

Benefits of Term Life Insurance

Cost – The rate per $1,000 of term insurance is much lower than whole life.
Flexibility – You can choose a specific policy term (duration of coverage) to meet your family’s needs, from 10 years up to 30 years.
Easy-to-Understand – With term life if you outlive your policy term your coverage ends. If you pass away during the term of your coverage, the insurance company pays out the death benefit to the beneficiary of your life insurance.
Renewability of Coverage – You may choose not to renew your term policy for another term when the original coverage expires.
Convertibility of Coverage – You may convert your temporary (term) coverage into a permanent life insurance policy by a specified date stated in your term life insurance contract.

If you need protection to last until the house is paid off, the kids are out of college, for a duration of thirty years or less, term life can help.

If you need the largest amount of protection to fit your budget, then term life may be a good option for you.

Benefits of Whole Life Insurance

Lifetime Protection – You have life insurance guaranteed to last for as long as you live.
Guaranteed Premiums – Your premium (cost of coverage) is guaranteed to remain the same for the life of your policy.
Cash Value – Whole life plans may build up some cash value savings (tax-deferred) inside the policy over time.
Loan – You may take a loan from the cash value inside your policy.
Final Expenses – Since your policy is guaranteed to protect you for your entire lifetime, your family will have funds to pay for your burial and funeral costs.

If you need life insurance that is guaranteed to last no matter how old you live to be, then permanent (whole) life insurance may be the right option for you.

Examples of Life Insurance Needs

and the Best Fit for Coverage

Term life insurance may be a good fit for the following situations:

Just Married
Growing Family
New Homeowner
Kids at College
Single Parent
Married with Children
Married without Children

Whole life insurance may be a good fit for the following situations:

Empty Nesters
Retired
Seniors
Single
Single without Children

Life Insurance Quotes

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