There are several common differences between the two basic types of life insurance.
Term Life Insurance
- Term life is temporary protection lasting for up to 30 years.
- Term life pays out a death benefit, but has no cash value.
- You may outlive the duration of your term life policy.
Whole Life Insurance
- Whole life insurance provides guaranteed lifetime protection.
- Whole life has cash value and pays out a death benefit.
- You may take a loan from the cash value of your policy.
- Whole life insurance may cost up to 5-10 times more for the same amount of life insurance compared to the price of a term life insurance policy.
Here's how to learn more about the difference between term and whole life insurance policies.