Whole Life or Term Insurance – What’s Best?

– Whole life policies tend to have much higher premiums than term policies for the same amount of coverage. The premiums are meant to cover the insured for life rather than a set term.

– Whole life builds up a cash value that can be borrowed against, while term life does not. However, the cash value build up comes at the expense of much higher premiums.

-Some will promote whole life’s cash value as a potential retirement funding source. However, the cash value usually grows at a lower rate than other retirement investments like stocks.

– Whole life is not necessarily a good investment product compared to term plus separate retirement investing. The main benefit of whole life is having lifelong death benefit coverage.

– Term policies allow you to get large amounts of coverage for affordable premiums strictly to protect loved ones. The coverage expires after the term without residual cash value.

– For many families, a term policy plus separate retirement investing provides better value than a whole life policy. But whole life does provide lifelong protection some may prefer.

To learn more about what type of life insurance policy best aligns with your financial goals, schedule an appointment with us here:


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