If you're shopping for a life insurance plan you may have heard about term insurance and whole life insurance, and wondered what is the difference?

Well, there are several important differences about the two basic types of life insurance: Term and Whole Life:

  • Price
  • Duration of Coverage
  • Cash Value

To start, term life costs a lot less than whole life insurance because it is temporary, lasting for 30 years or less. Usually, whole life may cost up to 2-3 times more than the same amount of term life insurance.

In additino, whole life provides guaranteed lifetime protection; whereas, term insurance offers coverage for a term (duration) of 10, 15, 20, 25 or 30 years, to meet your specific life insurance needs.

Also, term life insurance is "Pure Protection", not an investment, it provides life insurance only.

But whole life insurance provides life insurance and an investment feature that builds up cash value inside your policy over the years

Learn more about the difference between term and whole life insurance policies.