Life Insurance And Whole Life Insurance – What's the Difference?

It’s important to know the difference between a term life insurance policy and a whole life insurance policy.There are three main differences between a term life insurance policy and a whole life insurance policy.

• Life insurance policy will cover you for a certain number of years, whereas a whole life insurance policy will cover you for your entire life.
• Another difference between term life insurance policies and whole life insurance policies is that whole life insurance policies offer a tax-deferred accumulated cash value.
• Term life insurance policies are generally cheaper than whole life insurance policies.

Permanent life insurance is and can be a little bit more complex than term life insurance. Perm or whole life insurance tend to be more expensive than term life policies. Term life insurance policies offer no cash value. Permanent life insurance policies accumulate cash value, which grows tax defferd. Permanent life insurance policies accumulate cash value, which grows tax defferd. Term life is affordable and pays a death benefit to the insured person heir. Term life policies expire and the policy premiums increase with age. Whole Life insurance offers no room for premium flexibility. Also a permanent life policy can give you that peace of mind knowing that upon your death your loved ones wont be burdend with financial problems.