Term life insurance provides coverage for a set period (10-30 years) and is cheaper but expires. Whole life insurance covers you for your entire life, builds cash value, and has level premiums but costs more than term.
Term life provides a death benefit for a specific period — commonly 10, 20, or 30 years. If you die during the term, your beneficiaries receive the payout. If you outlive the term, coverage ends with no payout. Term is significantly cheaper, making it ideal for temporary needs like protecting a mortgage or raising children.
Whole life covers you for your entire lifetime as long as premiums are paid. It builds cash value that grows tax-deferred, and premiums never increase. The trade-off is substantially higher premiums compared to term. Whole life is best for permanent needs like estate planning or final expenses.
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Final expense insurance is a type of whole life insurance with smaller coverage amounts ($5,000-$50,000) and simplified underwriting. Traditional whole life offers larger coverage ($100,000+), requires medical exams, and builds more cash value over time. Read more
A common rule of thumb is 10-15 times your annual income. However, the right amount depends on your debts, family size, future expenses (college, retirement), and existing coverage. Read more
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