The Difference Between Term Life Insurance And Whole Life Insurance

Whether you’re simply considering purchasing a life insurance policy or have already made the decision to purchase a life insurance policy it’s important to know the difference between a term life insurance policy & a whole life insurance policy. Knowing these differences will help you choose the best life insurance policy for you.

The most recognizable difference between term life insurance policies & whole life insurance policies is the fact that a term life insurance policy will cover you for a certain number of years whereas a whole life insurance policy will cover you for your entire life. If you’re only looking for life insurance coverage for a specific amount of time a term life insurance is probably your best bet. However if you wish to be insured for the rest of your life you should purchase a whole life insurance policy.

Another difference between term life insurance policies & whole life insurance policies is that whole life insurance policies offer a tax-deferred accumulated cash value. This acts as an investment component. Some people are interested in the ability to invest using their life insurance policies so they choose to purchase a whole life insurance policy. However if you use other methods of investment a term life insurance policy is probably the best for you.

A third difference between term life insurance policies & whole life insurance policies is the difference in price. Term life insurance policies are generally cheaper than whole life insurance policies; however whole life insurance policies often offer fixed annual premiums so you won’t have to worry about your rates increasing if your health begins to deteriorate. Most term life insurance companies will raise your premiums based on the current condition of your health as well as your age.

So when you begin your search for the perfect life insurance policy take these differences into consideration & decide which type of policy is best for you.

California Life insurance pays you or your dependants a lump sum payment or replacement income in the event of your death