Get A Quote

Blog

Term vs Whole Life Insurance: Which Is Right For You?

Published September 21st, 2022 by Island Insurance Agency

Have you thought about what happens to those you love after you pass away? You may not have because no one truly wants to think about it.

But knowing what types of life insurance are out there is vital to the well-being of your loved ones if something were to happen to you. But do you know how to choose a life insurance policy?

It can be quite daunting, especially if you have no idea what you're doing. In this guide, we'll talk about term vs. whole life insurance so that you can choose which one is better for you!

Term Life Insurance

There are a few things you should know about term life insurance before choosing to go with this one. While there are pros, there are also cons. Let's take a look.

Pros

One of the biggest advantages of term life insurance is that it is one of the cheaper life insurance options for you to choose from. This is a straightforward life insurance policy that gives your loved ones benefits after you die.

These policies are very easy to understand because of the straightforward terms in them.

Cons

However, just as the name suggests, this type of life insurance only lasts for a certain term. Whether that be five years or thirty years, after those years are up, it expires. 

But if that term expires before you expire, then you're out of luck. You spent all of that money for peace of mind - when it didn't even come in handy.

In addition, the term life insurance policy may get more expensive depending on the term and if you have any other medical conditions.

Whole Life Insurance

Whole life insurance lasts your "whole" life—it won't expire. It is also a type of insurance that can possibly offer funds in cash in the future if need be. 

Pros

One of the pros of whole life insurance is that you will pay the same premium monthly, just like any other type of insurance. 

However, the cost of the insurance is front-loaded so that you pay more while you are younger and less when you get older. They are also tax-free, so you don't have to pay taxes on the insurance policy. 

Cons

The biggest disadvantage of whole life insurance is that it is more expensive, which can make it difficult to constantly pay these payments.

Additionally, if you do end up taking money out as a loan, your beneficiaries will receive less than the amount you take out.

Term Vs. Whole Life Insurance

There are a few large differences between term vs. whole life insurance. You have to weigh the pros and cons of the two to determine which one makes the most sense for you.

And once you do that, we're here to help you at Galveston Life Insurance Services! You can get a quote from us today.


‹ Back