Term life insurance provides coverage for a set number of years at a low cost and pays a death benefit only if you die during that period. Whole life insurance covers you for your entire life, builds cash value, and costs significantly more. The right choice depends on why you need coverage, how long you need it, and how much you can afford to pay.
Term life covers a specific window—10, 20, or 30 years. When the term ends, so does the coverage. Whole life lasts your entire life as long as premiums are paid, guaranteeing a payout no matter when you die.
Term life is dramatically cheaper. A healthy 35-year-old might pay $30 to $45 per month for $500,000 of 20-year term coverage. The same person might pay $350 to $500 or more per month for $500,000 of whole life coverage. The cost difference reflects the fact that term policies often expire without a payout, while whole life policies guarantee one.
Term life has no cash value—it is pure protection. Whole life builds cash value over time on a guaranteed schedule. You can borrow against it, withdraw from it, or surrender the policy for its accumulated value. However, the cash value grows slowly in the early years, and the returns are modest compared to other investment options.
Yes. Some people buy a large term policy for their peak-need years and a smaller whole life policy for lifelong coverage. This layered approach provides strong protection now while maintaining a permanent foundation.
There is no one-size-fits-all answer. Most families with temporary coverage needs get the best value from term life. Those with permanent needs or estate planning goals may benefit from whole life. A Truscott coverage review will walk you through both options side by side, tailored to your budget and goals. Reach out to compare your options clearly.
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