Which Is Cheaper Term Or Whole Life Insurance?

Term life insurance offers much lower rates per year than whole life insurance for the period of time you have life insurance.

For instance, since term life provides coverage for up to 30 years, if you compare the level rate for a 30 year term life policy with the cost of whole life insurance for a period of 30 years, the term life rate will be much lower.

However, renewing the 30 year term life policy over each year until you pass away, if you live many years after the 30 year period, the cost per year as you get older will increase, perhaps to the point where it will be higher for a year than the cost of the whole life insurance policy.

Whole life has guaranteed level rates for your entire lifetime. Whereas, level term life insurance has guaranteed level rates for up to 30 years.

Some people buy a whole life insurance policy for the burial expenses, and a term life policy for their larger life insurance needs they will have for a period of 30 years or less, such as, providing for their children, paying off the mortgage, etc.

Here's how you can learn more about whole versus term life insurance.