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Whole life insurance provides lifetime protection and builds cash value within the policy. As long as you pay your premiums on time, your life insurance remains in effect. Term life insurance provides temporary protection for a specific number of years, usually 1-30 years. If you outlive your policy, the life insurance coverage expires. Term life insurance is less expensive than whole life insurance in most cases. Whole Life (WL) is considered "permanent" insurance; that is, it is intended to be kept for one's entire life. WL also builds "cash value", which may be borrowed or used to pay premiums . Term (T) is a non-cash value type of coverage, which runs for a term of time e.g. 10, 20 or 30 years. At the end of the policy term, the contract terminates, and coverage ends.

Whole life insurance will cover you for your whole life, or up to the age of 100. Term life will cover you only for a specified term - 10, 15, 20 or 30 years.

Whole life insurance is more expensive than term life insurance. This is because whole life insurance also acts as an investment and will accrue cash value over the years. These can be utilized by the policy owner whenever needs arise.

In contrast, term life policies do not carry any cash/surrender value. If the policy holder survives the term, there are no returns on premiums paid, unless it is a ROP term policy.

You can learn more about the differences between the two policies at Term vs. Whole Life Insurance.

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โˆ™ 2009-02-12 10:01:17
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Q: What is the difference between a whole life insurance policy and a Term life insurance policy?
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What is the difference between term and whole life insurance if there is any?

The difference between term life insurance and whole life insurance is that a term policy covers the insured for a "term of years" whereas a whole insurance policy covers the insured for the entire life period.


What is the difference between whole and life term insurance?

The difference between whole and life term insurance is that a term policy is life insurance only whereas the whole insurance combines a term policy and a investment component so one can build cash value and borrow against it.


What is the difference between term vs whole life insurance?

The basic difference is that a term policy pays upon death or it expires when the term is reached. Whole life insurance gains value like an investment.


What is the difference between term life versus whole life insurance?

Term life insurance is only life coverage. When the person who is insured dies, the beneficiary receives the amount of the policy. Whole life insurance is a term life policy combined with an investment. This policy builds value.


What is the difference between policy and guidelines?

the basic difference between policy and guideline is the policy is rules for whole org. and guideline is rule for execution of some work.


What is another word for whole life insurance?

You can call a whole life insurance policy as a "Non-Endowment Life Insurance Policy".


what are the advantages of long term life insurance vs whole life insurance?

The basic difference between long term life insurance and whole life insurance is that a term policy is life coverage only and this is also considered an advantage. One can buy a long term life insurance for periods of one year to 30 years, whereas whole life insurance is a combination of a term policy with an investment component.


What is the difference between life insurance and whole life insurance?

The key difference between life insurance and whole life insurance is that regular life insurance carries a fixed term while whole life insurance covers one's entire lifetime. Whole life insurance also accumulates a cash value that one can borrow money against.


What is the difference between whole and universal life insurance?

Whole life insurance is less flexible then universal life insurance when it comes to premiums and payouts.


Is permanent life insurance the same as whole life insurance?

Technically, there is no insurance policy called as permanent life insurance. However, you can treat whole life insurance policy as permanent since the policy covered the whole life span of the policy holder and benefit is payable to nominee in the event of any eventuality of the policy holder.


Where can someone find information about what is the difference between whole life and term life insurance?

The basic difference between term and whole life insurance is this: A term policy is life coverage only. On the death of the insured it pays the face amount of the policy to the named beneficiary. You can buy term for periods of one year to 30 years. Whole life insurance, on the other hand, combines a term policy with an investment component. The investment could be in bonds and money-market instruments or stocks. The policy builds cash value that you can borrow against. The three most common types of whole life insurance are traditional whole life policies, universal and variable. With both whole life and term, you can lock in the same monthly payment over the life of the policy.


What is the difference between a renewable term life insurance policy and a fixed term insurance policy?

The basic difference between a renewable term insurance policy and a fixed term insurance policy is that in the former case premium is payable as per mode chosen for till particular period, whereas in fixed term insurance policy premium has been paid on single or one time basis for a fixed period. However there is no deviation from the basic principle of whole life policy wherein no amount is paid on maturity, only when any eventuality arises during the policy period, the entire sum assured amount is payable by the Insurance Company to the nominee of the deceased person.


What is the difference between term life insurance and whole life insurance?

Whole life insurance delivers coverage for the lifetime of the policy holder. It guarantees a fixed premium which can build cash value (which usually cannot be withdrawn without cashing the policy out). Term life insurance guarantees a fixed premium for a shorter period of time, and builds a better and more usuable cash value than whole life. At the end of the term policy the holder must either sign up for another term or forfeit coverage.


What is description of whole life insurance?

In Whole life policy, insurance claims are entertained in case of any eventuality of the policy holder during the tenure of the policy period only, like term assurance policy.


What is the description of whole life insurance?

In Whole life policy, insurance claims are entertained in case of any eventuality of the policy holder during the tenure of the policy period only, like term assurance policy.


What is ordinary life insurance?

Actually, whole life insurance policy other than endowment,single premia or ulip policy can be called ordinary life insurance policy.


What is the differenc between term and whole life insurance coverage?

Term life is insurance is only valid for the given period of time within the policy as whole life insurance coverage is for the entire duration of ones life.


What is the best life insurance policy in India?

Government Owned Life Insurance Corporation of India's New Jeevan Anand Policy is at present the best insurance policy in India, which is a mixture of endowment and whole life policy, which is indeed novel and unique in the whole world.


What is convertible term insurance?

A term policy that can be converted to a whole life (or other) policy.


What is the difference between national and local policy?

national = the whole country local = county or city/town


What is the difference between term life insurance vs whole life insurance?

A term life insurance is during the insurer's life only. When he or she is gone, then the insurance ends. The whole life insurance on the other hand has what the term life insurance covers plus more.


Who are some Canadian whole life insurance policy providers?

Some Canadian whole life insurance policy providers are State Farm Canada, LSM Insurance, MJW Insurance, Essential Benefits, and The Canada Life Assurance Company.


What is the difference between term and whole life ins?

Term life insurance is temporary coverage that lasts for a specific number of years, usually 10, 15, 20, or 30 years. If you outlive the term of the policy, the life insurance expires. Term life does not build cash value within the policy. It is not an investment, but pure protection. Whole life insurance is permanent life insurance for your entire lifetime, as long as you pay the premiums. It builds cash value within the policy. You may be able to take a loan out from the cash that builds inside the policy.


What are the differences between term or whole life insurance?

Term Life insurance is a type of policy used for a set amount and a predetermined number of years that is paid out during one's lifetime. Whole life insurance is term combined with a type of investment policy that allows you to borrow against it during the span of the policy because it is constantly increasing in value.


What are the disadvantages of a Modified whole life insurance policy?

A major disadvantage of a modified whole life insurance policy is that you can never change the face value on your policy. Additional coverage would require the purchase of an another policy. Also the growth potential on your policy is limited.