All Life Insurance Tips

What is the difference in whole life insurance and term life?

Public Comments

1. whole life insurance policy is the policy under which you have to pay premium for the certain term but the sum along with any bonus there is will become payable to nominee only after the death of the life assured where as term insurance policy is such policy inwhich the sum will be payable ONLY IF THE DEATH accures during the specified term and nothing will be payable to anybody after the expiry of the term and life assured survives there after also
2. Cheap and expensive. Term is cheap and whole life is expensive. So, take the cheap. The details in why are complicated. Ask an insurance agent and if they can not explain it then find an agent that really knows. They are hard to find. And, even harder to find one that will tell you the truth.
3. term is for a time period only as 5/10/20/30 years whole life is for life of applicant and usually carries cash value etc benefits
4. Term is for a limited amount of time, at the end of the time, if you are alive you have zero money. Whole life can go on as long as you pay, I think in some states when you reach the age 100 you can get the money. You can also take out some of the money you have accumulated or borrow from it. Whole life is more expensive. Usually term can be converted to whole before it ends, however you will be older and the cost will reflect this. You can start off with a term policy and get a whole life policy at some time in the future. good luck
5. Cheap & expensive? A 10-year term policy is cheaper than a 20-year term policy so should you take the 10-year policy because it's cheaper? Um...I don't think so. The difference between the plans are the length of time that the plan is good for. A whole life policy can last your whole life. If you want a plan to last until you're 100 years old then consider a universal life policy with a guaranteed premium until you're age 100...it'll be cheaper than a whole life policy and last just as long (there are some other differences as well). Buy for the length of time you need and combining policies makes sense too, because if you need $1,000,000 of coverage now, you likely won't need that much at retirement. But, you won't necessarily be without a need at that time -- you still need to get buried right? Also, you might want to have a plan in place should something unexpected make a dent in your retirement plans so a spouse can have a life-line thrown to them in the event of your death.
6. In a nutshell: Term is like renting an apartment - you "rent" the insurance - for a period of time (like a lease). You can renew it, if you like - the rate may stay the same, it may go up. Whole Life is similar to buying a house: - you "own" the insurance, for as long as you make the payments (premiums). Like owning a home, it is more costly, but in the long run - if you can afford it - the better option. Like most people, sometimes it is easier to rent first, then later on, to buy.
7. There are more differences than I have time for. Term starts off cheap and will eventually be too expensive to have (at some point, usually when you are needing it, like in old age). It increases at different TERMS, like 5, 10, 20 years etc, it doesnt cancel but you could find yourself paying 25 dollars now and when you are 89 and very unhealthy it could be 20,000 a year. Whole life will be more expensive up fron but will remain the same your WHOLE LIFE. say you pay 100 a month for the same coverage as the 25$ term, but when you are 115 yrs old it will still be 100, and in the mean time, depending on the company, your death benefit can increase by 2, 3, or even 5 times the original amount. And in many cases, the policy will be self funding, meaning you no longer pay anything out of your own pocket. For anyone saying buy term and invest the difference, $20,000 a year term policy for a $50,000 benefit just doesnt seem reasonable since investing the difference isnt likey to pay you enough to make it financially possible. Email/call me for more inf.....there is a lot of it