Life Insurance

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Whole life insurance is a permanent life plan that provides coverage throughout your entire life. The premiums tend to cost more than a term plan would, but getting this insurance plan may be beneficial in the long run.

The whole life insurance cash value usually ends up being high, but payments grow in a tax-deferred account at an established rate. Premiums won’t change over time and the death benefit is certain, regardless of the time frame. In this sense, the policy functions as an investment.

You are also able to choose your term based on your unique situation, possibly reducing costs in the long run. This choice is popular for young families because of the lower premiums upfront. It can also be a good choice for seniors factoring in their long-term plans. 

They usually vary between 10 and 30 years long. If the policyholder passes away during that specified period, your beneficiary will receive the payout.

• Whole Life insurance Pros: The premiums will always be the same amount, the payout is guaranteed (subject to limitations and exclusions), and the value of your plan grows at a constant rate.
• Whole Life Insurance Cons: You cannot choose the length of the policy and it’s typically more expensive than term life insurance.

• Term Life Insurance Pros: It’s customizable, specific to your timeline, and usually costs less than whole life insurance.
• Term Life insurance Cons: If you outlive the term length, your coverage will end and you won’t receive any benefits. You will not be covered your entire lifetime and your policy will not accumulate cash value like an investment account does.