Term vs. Whole Life Insurance
Feb 16, 2010 Life Insurance 101, Life Insurance Quotes, Types of Life Insurance, Whole Life Insurance
If you are now, or have been in the market to purchase life insurance, you have been faced with the question “what is better for me, term life insurance or whole life insurance?” The chart below should help you find an answer to that question.
|
TERM LIFE INSURANCE |
WHOLE LIFE INSURANCE |
|
Pure form of life insurance |
Life insurance combined with a savings component |
|
Protection for the term |
Protection for the whole life |
|
Level premiums through the term; then premium increases |
Level premiums for life |
|
Level benefits |
Benefits could increase |
|
No cash value |
Cash values |
|
Term could be 1 year to 30 years |
Term is whole life |
|
Affordable |
You pay for life protection and also invest a portion of the premium |
|
No cash value to borrow against |
You may borrow against the policy cash value |
|
Proceeds normally exempt from income taxes to beneficiary |
Proceeds normally exempt from income taxes to beneficiary |
Other personal factors may come into play in the decision as to whether to purchase term or whole life. If you are still not sure, please visit us at www.insuranceglobe.net , for more information and articles about life insurance. At INSURANCE GLOBE we will help you find the best insurance for you at the most competitive prices.
