Term vs Whole

Not sure whether term or whole life insurance is right for you? Insurance Best Prices can help you find the right policy for your goals and financial situation.

We can help you understand the difference between each type of life insurance policy and which to choose.

Term Life Insurance vs. Whole Life Insurance

Life insurance isn’t one of the more fun things to shop for, but it is one of the most important. Without life insurance, your loved ones can find themselves in debt and dealing with major financial decisions while coping with emotional stress. At Insurance Best Prices, we make shopping for life insurance simple and convenient. We can help you understand the differences between term and whole life insurance and determine which is right for you.

What is term life insurance?

Term life insurance is a life insurance policy that covers a specific period of time. It is up to the policy holder to determine what that term should be. Typical term life insurance lengths are 10, 15, 20, 25, and 30 years. The length of your policy is typically dependent on how old you are and how long you believe you would need coverage. If your term life insurance policy expires, you can extend it, but your premium will be adjusted. You can also look for alternative options.

What is whole life insurance?

Whole life insurance is considered permanent life insurance, because it provides coverage for as long as you live, and the premiums are paid. Whole life insurance doesn’t expire, but it is typically more expensive than term life insurance. A unique benefit to whole life insurance is that it can be used like a savings account, and you can borrow against it.

What are the differences between term life insurance and whole life insurance?

Term life insurance is the most popular type of life insurance policy for families, because it is more affordable and flexible. You can choose the policy length that makes sense for you. However, whole life insurance is beneficial in some cases.

With term life insurance, your premiums can increase at the end of the term. With whole life insurance you will pay the same amount for the entire duration of the policy. However, whole life insurance can be up to 10 times more expensive than term life insurance.

By completing a short form on Insurance Best Prices, you can compare policies and find the right life insurance coverage for your needs.

Compare the cost of term life insurance and whole life insurance

One of the main factors for why people choose term life insurance over whole life insurance is the cost. Term life insurance provides substantial coverage at an affordable monthly or annual rate. Whole life insurance provides coverage for your entire life but is more expensive. Complete our quote request form to compare rates today.

Which type of life insurance policy should I choose?

The best type of life insurance policy varies from person to person as it is reliant on your financial situation, how many dependents you care for, and other factors. Insurance Best Prices can help you compare policies and find the right coverage.

Term life insurance might be the best option for you if:

• You have short-term debts like credit card or personal loan debt
• You have student loans you are responsible for paying
• You have a mortgage that won’t be paid off soon
• You want to cover the cost of childcare
• You are the primary earner for your family, or your income contributes to a certain lifestyle you want to help to maintain
• You cover the cost of tuition

Whole life insurance might be the best option for you if:

• You want to provide an inheritance that is tax-free when you pass
• You are the parent or guardian of someone who has special needs, and you want to provide financial security
• You have a high net worth and want to help to cover inheritance tax when you pass

These are just some of the situations where these types of policies make sense. Contact us today to compare life insurance policies and find the right plan for you.

Can I change my policy from term to whole life insurance?

Some term life insurance policies can be converted into whole life insurance without an additional medical exam or health questionnaire if done before a certain age. Life insurance policies typically become more expensive as you age, so you will save by converting your policy sooner.

Are there other life insurance options?

There are other life insurance types than term and whole life insurance.

Simplified Issue Life Insurance

Simplified issue life insurance is a type of final expense insurance. It gets its name, because it’s a simpler process to get approved than term or whole life insurance. Approval isn’t always guaranteed, but a medical exam is not required. Instead, you will be asked to complete a health and lifestyle questionnaire.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance provides guaranteed approval. If you are between the ages of 45 and 85, you cannot be turned down for this type of coverage. It does not require a medical exam, submission of medical records, or a database check.

Critical Illness Life Insurance

This type of life insurance provides additional coverage for medical emergencies like a stroke, cancer, or heart attack. You might be able to add this type of coverage to an existing life insurance policy or purchase it on its own.

Complete the short life insurance quote form on InsuranceBestPrices.com today to start comparing life insurance policies and find the right policy for your needs.