Leah Kelvin
Active member
Term life insurance is a kind of life insurance policy that gives coverage to persons over a specified term. Typical periods for such policies are 10-30 years. If the person being insured passes away during that time, his/her beneficiary will receive a death benefit. Whole life insurance on the other hand covers a person until he/she dies provided all premiums are paid and after death it pays out only as long as the beneficiaries survive this person.
Renewal can lead to an increase in initial premium for term life insurance while at its onset whole-life-insurance has high premiums that contain cash-value components which appreciates with time. Unlike whole-life-insurance, term-life-insurance does not accrue cash value and therefore there is no investment or saving feature attached to the death benefit.
Whole life insurance has a cash value component that grows tax-deferred, offering policyholders options of borrowing against it or surrendering the policy for cash. Term life insurances provide flexibility in terms of amount covered as well as duration but have no options for any cash values. Whole life insurance offers permanent coverage with fixed premiums for stability purposes and access to Cash Value through loans or withdrawals.
Renewal can lead to an increase in initial premium for term life insurance while at its onset whole-life-insurance has high premiums that contain cash-value components which appreciates with time. Unlike whole-life-insurance, term-life-insurance does not accrue cash value and therefore there is no investment or saving feature attached to the death benefit.
Whole life insurance has a cash value component that grows tax-deferred, offering policyholders options of borrowing against it or surrendering the policy for cash. Term life insurances provide flexibility in terms of amount covered as well as duration but have no options for any cash values. Whole life insurance offers permanent coverage with fixed premiums for stability purposes and access to Cash Value through loans or withdrawals.
