Term life insurance generally provides a set level of protection for a definate period of time, or term. Most often these policies come in 10, 20, and 30 year terms and only pay if you die during the term of the policy. There are some varieties on the term policies which will return your premiums in the event that you outlive the policy, so it is not always wasted money.
Whole life, or permanent insurance, offers protection until a set age, usually 121. Most whole life policies have a set time frame that you pay on the policy for, or an age at which the policy is paid off. The basic whole life contract with my company is considered paid at age 100, but once again there are variation here as well.
My company also offers whole life policies where the premiums are paid off after 10 years, 20 years, or at the age of 65, but the policy remains in effect, continuing to accumulate cash value, until the age of 121.
If you wish to pay through the nose get whole life. If not, buy term. Insurance agents love to sell whole life as it returns a greater commission.
Whole life payments you pay for your whole life until age 100. It does build up dividends, but they are a joke, so don’t let any agent sell you on this point, as insurance is NOT an investment. Term is much cheaper for the same coverage, but it’s like renting a home, at the end, you get nothing, no cash value.
September 28th, 2007 | 
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Go to Yahoo Finance, click on “Personal Finance” and read the life insurance section.
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Term life insurance generally provides a set level of protection for a definate period of time, or term. Most often these policies come in 10, 20, and 30 year terms and only pay if you die during the term of the policy. There are some varieties on the term policies which will return your premiums in the event that you outlive the policy, so it is not always wasted money.
Whole life, or permanent insurance, offers protection until a set age, usually 121. Most whole life policies have a set time frame that you pay on the policy for, or an age at which the policy is paid off. The basic whole life contract with my company is considered paid at age 100, but once again there are variation here as well.
My company also offers whole life policies where the premiums are paid off after 10 years, 20 years, or at the age of 65, but the policy remains in effect, continuing to accumulate cash value, until the age of 121.
If you wish to pay through the nose get whole life. If not, buy term. Insurance agents love to sell whole life as it returns a greater commission.
Whole life payments you pay for your whole life until age 100. It does build up dividends, but they are a joke, so don’t let any agent sell you on this point, as insurance is NOT an investment. Term is much cheaper for the same coverage, but it’s like renting a home, at the end, you get nothing, no cash value.