There are several basic differences that stand out between term and whole life insurance, including:
- Pricing
- Length of Coverage
- Level Premiums
- Investment Feature
Pricing: Term life insurance costs a lot less than whole life because it is temporary, lasting for 30 years or less.
Length of Coverage: Whole life provides guaranteed lifetime protection; whereas, term life lasts for a term of 10, 15, 20 or 30 years.
Level Premiums: Whole life has premiums that remain the same for your entire lifetime, while term life has level premiums for the duration of your policy term.
Investment Feature: Whole life builds some cash value inside your policy over the years, while term insurance has no investment feature, it is pure protection.
Here's how to compare term and whole life insurance policy differences.