Difference Between Term & Whole Life Insurance
Many people wonder what the difference is between term & whole life insurance. It can help to compare term & whole life insurance to determine which type of life insurance is best for your particular situation.
Whole life insurance is a type of permanent life insurance coverage that provides a guaranteed death benefit along with guaranteed* cash values. Part of each premium payment is applied to the policy's cash value account, which grows on a tax-deferred basis (based on current federal tax laws).
Whole Life Insurance
Premiums are set at a certain amount and don't change.
Premiums are partially determined based on the age of the insured. The younger the insured is, the less expensive the annual premium.
There are guaranteed cash values or dividends that are dependant on the specific terms of the policy.
The insured can borrow against cash values.
Current federal income tax law allows for deferred tax advantages for some insurance policies.
Whole Life Insurance provides coverage for the entirety of the insured's life, generally to age 100, as long as the policy is in force.
If you need more information about the difference between term & whole life insurance or still need clarification about how to compare term & whole life insurance or which type you should pick, call Matrix Direct. At Matrix Direct, we are an insurance service company that represents established and highly-rated insurance companies. Our licensed life insurance professionals listen to you, and then recommend appropriate life insurance coveragechoices for you. For example, we can help explain the difference between term & whole life insurance.