Anyone on the market for life insurance goes through the term vs whole life insurance debate, and many come down to one or the other at the last minute. In this economy, term wins between the two. Term insurance is much cheaper than whole insurance in general, but those lower premiums are provided due to lower benefits as well as a definite period of time the policy holder is covered.

Whole insurance does not have a definite coverage period, so as long as the policy holder continues to pay the premiums, they will continue to be covered until they pass away. This is the primary benefit of whole insurance, and it is a big one. However, it is marred by high premiums that many people may not be able to afford.

Term life insurance can give you a choice as to how long you want to be covered. And because they are flexible and there are a wide variety of choices, it’s possible to get the perfect price and benefit amount for the period of time you want to be covered. That being said, in the subject of term vs whole life insurance, term insurance should only be used for high-risk years (like for children, during a high-risk job, or while medically unstable), and not be used as a permanent source of security.

If you would like the security of whole insurance but do not want to pay the premiums, a level term policy can give you that peace of mind until you are financially secure enough to move forward with a whole policy.

To put the dispute of term vs. whole life insurance at rest, if you are looking for a life insurance policy to cover you for an indefinite amount of years, go with whole. It will not run out so you risk no losses, and after the age of 100 you no longer have to pay premiums. Otherwise, term coverage will be good enough. Why waste the extra money?

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Author: Tiffany Nelson