What is the Difference Between Whole Life and Term?
Whole life insurance is meant to be purchased for your whole life. It costs more initially, but the premiums do not go up if you are older or develop a chronic health condition. Whole life insurance also accrues a cash value that you can borrow against, or get back if you decide that you no longer need insurance. Term life is designed to be paid for over a shorter term. These policies are for people that expect to have sufficient investments saved up so that they will not need insurance at the end of the term. It does not develop a cash value, and cannot be borrowed against.
