Term or Whole Life?

Once you come to the conclusion that you need to purchase a life insurance policy, it’s time to compare your many options.

In addition to receiving quotes from multiple companies, there’s something else you need to do: decide if term or whole life coverage is right for you.

There’s no denying the fact that both types of policy have both benefits and drawbacks. Your job is to compare the pros and cons, cut through the clutter, and make an informed decision that will benefit you and your family.

Answer these Questions

Although you can receive the assistance of your life insurance broker, although you can consult with your family, you and you alone are in charge of making the final decision.

By addressing the following questions, you’ll find it much easier to purchase the right type of policy at the right time.

What does your budget look like?

If you’re shopping based on price alone, not taking anything else into consideration, you’ll typically find that term life insurance is more affordable.

Of course, there are several tradeoffs to take into consideration. For example, you may be able to save money now, but your policy will expire at some point in the future. When this happens, you’ll be older, which means purchasing another policy will cost more.

Are you interested in lifelong coverage?

Some people are okay with the idea that their policy only provides coverage for a particular period of time, such as 15 or 20 years.

Others, however, don’t see the point in this. Instead, they realize the benefits associated with a whole life policy. With this, as long as you pay your premium in full every year, your coverage will remain in effect.

You Could Go For A Universal

In reality, there are other options apart from whole life or term. There is a type of insurance called Universal, and it may be the most diverse kind. You can do a fixed, variable, guaranteed and many more options exist. Universal Life is a great choice for people looking to get life insurance that last forever.

We get many requests from clients that think they want whole life insurance. However, after digging a little deeper we often find that Universal is a better choice for many clients.

Are you excited about the idea of your life insurance policy doubling as an investment?

With term life insurance, this never comes into play. With whole life insurance, you have to think long and hard about how this could improve your financial situation.

Many whole life insurance policies accumulate cash value as the years go by. Furthermore, depending on the company, you may be eligible for annual dividends. In reality, a whole life insurance is a only a good savings vehicle if you are a conservative investor.

With this in mind, you may soon find that paying more for whole life insurance is well worth it.

Do you want to take loans from your policy?

This is something that many people overlook when purchasing life insurance.

With whole life coverage, you may have the option to take out a loan against the policy’s cash value. It’s not something that everyone does, but it’s good to have the option.

Note: term life policies don’t afford this opportunity.

In reality, many people haven’t thought of using their life insurance as a savings vehicle.

Do you want to get multiple quotes?

Unfortunately, there are many myths associated with the life insurance industry. One of the most common is that it’s easier to purchase a term life insurance policy because more companies offer this coverage.

It doesn’t matter what type of policy you’re seeking, you’ll find many companies, both big and small, offering what you’re looking for.

Generally speaking, you won’t have any trouble securing five or more quotes, all from companies with a good reputation and excelling ratings.


As noted above, the type of life insurance you purchase is based largely on your personal preference, family situation, and finances.

If you’re comparing term and whole life policies, answer the five questions above. So you’ll find yourself moving in the right direction and in position to make an informed and confident purchase.

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