What is the difference between Whole Life Insurance and Term life Insurance policies?

What is the difference between Whole Life Insurance and Term life Insurance policies?

Expert Solution

Term Life Insurance.

It provides death benefits only
Paid only if one dies while the term of the policy is in effect
affordable life insurance
Purchased for a specific time period
has no maturity value
Becomes more expensive with age
Can be converted to whole life insurance

Whole Life Insurance

The policy lasts for whole life
offers both death and savings benefits.
flexibility in choosing premium payment frequency and withdrawals.
a lump sum is paid when you decide to discontinue the policy
A portion of the cash value can be withdrawn or borrowed during the life of the policy
It has more expensive premiums, but potentially save more money over the life of the policy

jeff jeffy answered 2 years ago

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