Life

Term vs whole life

How much coverage a household actually needs, and how term and permanent policies differ.

3 minute readLife

Quick answer

Term insurance covers a set period — usually 10 to 30 years — at the lowest cost per dollar of protection. Whole life costs substantially more but lasts for life and builds cash value. For most families with a mortgage and kids at home, term solves the problem the coverage exists to solve.

What you need to know

Term: maximum protection per dollar

Best when the need has an end date: a mortgage payoff, kids reaching independence, retirement.

Permanent: lifelong need or estate planning

Useful for lifetime dependents, business continuity, or estate liquidity.

Blending is common

A large term policy plus a smaller permanent policy is often the practical answer.

Common mistakes

  • Relying only on employer coverage, which is small and not portable.
  • Waiting to buy, when age and health only make pricing worse.
  • Insuring the earner and not the parent doing unpaid household work.
  • Leaving outdated beneficiaries on the policy.
  • Buying a term length that expires before the need does.

When to talk to an agent

Talk to an agent when someone becomes financially dependent on you, when you take on a mortgage, when your health or income changes, or when you want a real number instead of a guess.

Frequently asked

This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.

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