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Term Insurance Vs. Whole Life Insurance ?

May 29th, 2010 | | Tags: , , | 6 Comments | |

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Can anyone please explain the difference b/w a Term Insurance and Whole Life Insurance. I’m a little bit confused and looking for details on it. Thanks

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6 Responses to “Term Insurance Vs. Whole Life Insurance ?”

  1. Sheyla Says:
     May 29th, 2010 at 9:02 am

    visit this for details http://www.termwholelifeinsurancequotes.com

  2. Rick B Says:
     May 29th, 2010 at 9:02 am

    ONLY BUY TERM!!!!

    Whole life is insurance and a savings vehicle combined. It has much much higher fees/commissions. Don’t save/invest with an insurance company; buy insurance with them.

    Buy level term and INVEST the difference.

  3. Lynn s Says:
     May 29th, 2010 at 9:02 am

    Whole life you can borrow against. it can also be like a nest egg you can cash out before death.

    Term life is cheaper but is like car insurance, one the premium is paid and the time passes your money is gone.

    Experts say term life is better because you can invest the difference in price of a whole life, and make a better return on your money. Ask a State Farm Agent if you need further info.

  4. mbrcatz Says:
     May 29th, 2010 at 9:02 am

    Term insurance is much cheaper. It’s a policy where the rate is guaranteed for a "term". It could be one year, ten years, twenty years. It’s "pure" insurance. If you don’t die during the term, they don’t pay out, and you don’t get money back.

    Whole life, is much more expensive. It’s a policy where the rate is locked in, for your whole life – until you die. It combines a "savings" account, with the insurance, and you can borrow against the savings.

    As far as which one is better for you, it depends on the GOAL of the insurance. For most people, "buy term invest the difference" – and, there is QUITE a difference, as whole life can easily cost ten times as much as term – leaves them better off in the long run.

    I’d strongly suggest you do some life insurance research, at yahoo personal finance, and dave ramsey’s websites.

  5. sublimechrispy Says:
     May 29th, 2010 at 9:02 am

    Term insurance is like renting insurance for a specified period of time. The coverage will usually be much more expensive when it is time to renew.

    Whole life insurance premiums are guaranteed to never go up but they are considerably higher than term rates (because there is a 100% chance that you will die and the policy will pay – unlike term where it is relatively unlikely that you will die in the next 10 years). There is a built-in cash value that can be (but should never be) cashed out, or converted to reduced paid-up insurance in case you wanted to stop paying the premiums. Just beware of any policy with a penalty for doing this.

    The best bet is if you can find a guaranteed renewable to age 100, relatively level premium term policy. It will be more expensive than a typical term policy but cheaper than whole life. It would not have a cash value, but that can be a benefit because it would be protected from future creditors such as a nursing home.

  6. Soham Says:
     May 29th, 2010 at 9:02 am

    Term life insurance covers life risk only for a particular period of time "a term" while a whole life insurance covers life risk until death of the policy holder and hence much expensive than term life policy. Both term and whole life insurance comes with and without savings part attached to them.

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