Question

What is the cost difference between Whole life and Term insurance? Please Explain, the cost differences.

Answer 1

To understand the cost difference first we need to understand the difference between there coverAGE
Term insurance is provides death benefit only whereas whoile insurance provides covers life and also providing death benefit and cash value accumulation which builds during term of policy
As whole insurance provide more benefit it is more expensive than term insurance
In starting whole insurance premium is more expensive but money can be saved
over the term of policy if it is for considerable no. of years
Also some portion of cash value can be withdrawn during the term, which is an added advantage
Term insurance is more expensive if taken after age of 50.
So to sum up we can say that term insurance is less expensive than whole term.