What are the differences in Term Life insurance and Whole Life Insurance?

John

Austin,TX.

John, 

Term life insurance policies are usually less expensive than whole life insurance policies. Term life insurance policies don’t offer, or require, the components that whole life insurance policies do.

The simple explanation is that term life insurance is just raw, basic insurance. It pays cash to the beneficiaries upon the death of the insured person. Until that death occurs, the policy has no actual cash value. You can’t borrow against a term life policy and if you stop paying the premiums, you’ll have nothing to show for the premiums you’ve already paid.

Whole life insurance does build ongoing cash value. The longer you keep the policy, the more value it has. And this is real, cash value that you can borrow against if you get in a bind for cash. Although whole life insurance is more expensive than term life insurance, the returns you can get, in the form of increased cash value over the years, can be substantial.

You can go online and get several quotes to compare.

Excellent Question. 

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