Is term life insurance better than whole life insurance?
Term life insurance plans are much more affordable than whole life insurance. This is because the term life policy has no cash value until you (or your spouse) dies. In simpler terms, the policy is not worth anything unless the policy owner dies during the course of the term. Term life is only there to replace an income.
What is whole life insurance?
Whole Life Insurance Whole life is a form of permanent life insurance, which differs from term insurance in two key ways. For one, it never expires as long as you keep making your premium payments. It also provides some “cash value” in addition to the death benefit, which can be a source of funds for future needs. 3
Is it worth it to buy a whole life policy?
If you want life insurance protection that lasts your entire life, then a whole life policy from a solid provider is a great choice for your needs. It can also be a worthwhile investment for older people concerned about estate planning and minimizing the effects of taxes for their heirs. What happens to term life insurance at the end of the term?