Term Life vs Whole Life: Which is Right for You? Learn the Key Differences in One Article!

Cost Comparison

Cost is one of the biggest differences between term and whole life insurance. Term life insurance is usually the cheapest option because it is temporary and has no cash value. Whole life insurance premiums are much higher because it usually provides coverage for a lifetime and has cash value accumulation.

The following is a comparison of annual premiums for term life insurance and whole life insurance for some age groups and different genders:

Data source: Covr Financial Technologies

[Do you only want to buy term life insurance for a few dozen dollars a month? ]

Most life insurance companies in the United States provide free online quotes. After filling in basic information, health status (such as whether you smoke or exercise) and expected insurance amount, you can prepare a personal insurance policy and provide a personal rate quote based on your personal situation. However, due to the different background conditions of each insurance company’s policyholders, the rate setting rules are different. The actual cost is related to the policyholder’s personal health status and awareness, so the specific amount should be quoted in person for the most accurate inquiry.

Warm Tips: Online inquiries usually offer larger discounts. If you further provide your phone number and let the insurance broker contact you, you may get an even bigger discount.

Who and what situations are term life insurance and whole life insurance suitable for respectively?

Most families will find term life insurance sufficient, but in some cases whole life and other permanent insurance may be more appropriate.

Choose term life insurance if…

– You only need coverage for a specific period of time, such as to raise children or pay off a mortgage.

– You want the cheapest coverage. Especially if you are young and healthy, term life insurance is the most economical choice.