Term Life vs Whole Life Insurance

Term life insurance

Term life covers a specific period — usually 10, 20, or 30 years. If you pass away during the term, your beneficiaries receive a death benefit. If you outlive it, the policy ends with no payout.

• Pros: lower premiums, simple structure, ideal for temporary needs like a mortgage or raising children
• Cons: no cash value, and coverage ends when the term expires unless renewed at a higher rate

Whole life insurance

Whole life is permanent coverage that lasts your lifetime as long as premiums are paid. It includes a cash value component that grows over time and can be borrowed against.

• Pros: lifetime protection, guaranteed death benefit, builds accessible cash value
• Cons: higher premiums and slower growth than other investment vehicles

Which one is right for you?

Choose term life if you need affordable, temporary protection. Choose whole life if you want lifelong coverage plus a savings component — often for estate planning, wealth transfer, or supplemental retirement income.