One thought on “What is the difference between term life and whole life insurance?

  1. Arti says:

    Term life insurance occurs over a predetermined period of time, typically between 10 and 30 years. Term policies may be renewed after they end, with premiums recalculated according to the holder’s age, life expectancy, and health. Here, the holder can withdraw or borrow against the savings portion of their policy, where it can serve as a source of equity. Unlike a term life policy, whole life insurance includes a savings component, where the cash value of the contract accumulates for the holder. By contrast, whole life insurance covers the entire life of the holder. Meanwhile, whole life insurance premiums may cost ten times more by comparison. The holder will not have their money returned once a term life insurance policy expires if they outlive the policy. This is because the risk to the insurer is much lower with term life policies. For instance, a term life insurance policy may follow the given structure, where a healthy 45 year old holder pays fixed monthly premiums of $60 for 20 years, with a $500,000 death benefit payout. Life Insurance Life Insurance Life Insurance

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