Term or Whole Life Insurance?

Term or Whole Life Insurance?

Term or Whole Life Insurance? It depends on your circumstances and financial goals.

Generally speaking, term life insurance offers the greatest coverage for the lowest initial premium and is a great solution for people with temporary needs or a limited budget.

Whole life insurance may make more sense if you anticipate a need for lifelong protection, or if the option of accumulating tax-deferred cash values is attractive to you.

Also, it doesn’t have to be one or the other. Sometimes, a combination of term and whole life insurance might be the right answer.

Term or Whole Life Insurance?

http://www.lifehealthpro.com/2013/06/19/whole-life-vs-term-theres-a-clear-winner-here

Term vs. whole life insurance cost comparison

The Differences Between Term and Whole Life Insurance

MALE, AGE 30

Policy amount Whole life 30-year term life 20-year term life
$250,000 $2,385 $240 $156
$500,000 $4,675 $403 $242
$1,000,000 $9,217 $720 $415

FEMALE, AGE 30

Policy amount Whole life 30-year term life 20-year term life
$250,000 $2,114 $206 $141
$500,000 $4,142 $335 $208
$1,000,000 $8,150 $585 $347

MALE, AGE 40

Policy amount Whole life 30-year term life 20-year term life
$250,000 $3,508 $384 $210
$500,000 $6,910 $687 $348
$1,000,000 $13,700 $1,281 $631

FEMALE, AGE 40

Policy amount Whole life 30-year term life 20-year term life
$250,000 $3,008 $314 $185
$500,000 $5,897 $553 $306
$1,000,000 $11,677 $1,026 $534

MALE, AGE 50

Policy amount Whole life 30-year term life 20-year term life
$250,000 $5,436 $913 $491
$500,000 $10,802 $1,725 $898
$1,000,000 $21,483 $3,301 $1,692

FEMALE, AGE 50

Policy amount Whole life 30-year term life 20-year term life
$250,000 $4,569 $689 $375
$500,000 $9,003 $1,284 $669
$1,000,000 $17,760 $2,349 $1,233

Methodology: We averaged the three lowest quotes available in each category for healthy men and women. Source: Quotacy.

So, Term or Whole Life Insurance? The difference in cost between the two products is huge. The difference in coverage is much different, as well.

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