Life Insurance: Should you choose Term or Whole Life?

Mike Wittkowski, CLU

Mike Wittkowski, CLU

If you’ve begun to think about your life insurance options, you probably already know about Term Life. For most people, Term Life insurance may seem like the best option, but it’s important to know about your other choices. Term Life & Whole Life have different features, benefits, and disadvantages, so your policy should match your financial and family situation.

The first step in finding the right policy is to consult a qualified Life Insurance Agent. Even if you generally like to do your own research when it comes to financial decisions, an insurance agent can help you make sure you fully understand your policy and make the right choice. It’s important to choose an agent carefully, because you need a life insurance expert, not an insurance salesman. (As a Chartered Life Underwriter, I’m happy to help you in this area.)

A Life Insurance agent like me can answer any questions you have, but having a basic understanding of the differences between Term and Whole Life will help you make an educated choice.

Term Life

Term Life insurance allows you to purchase a large amount of coverage at competitive prices for a fixed period of time. When you find instant quotes online, what you’re getting is a price for a Term Life policy. A 20-year term policy with $250,000 in coverage for a 30-year old man in excellent health, for example, would cost about $13.78 per month.

For those in excellent health, Term Life is a very affordable way of buying significant coverage. Unlike Whole Life, however, a Term Life policy pays a benefit only if you die before the policy term expires. If you purchase a 30-year policy when you’re young and in excellent health, you’ll have nothing to show for it at the end of the term since Term Life policies do not build cash value. In 30 years, your health and circumstances may change and make term life less affordable. Because of this, Term Life is ideal for limited needs.

Whole Life

Whole Life insurance builds cash value

A Whole Life policy builds cash value and leaves your family a financial legacy

Whole Life is a form of permanent life insurance. Unlike Term Life, a Whole Life policy is a useful financial planning tool. It provides permanent protection and builds cash value that you can borrow against. Although the premiums for Whole Life policies are generally more expensive than Term Life, you pay a constant premium for your entire life.

A major advantage of Whole Life policies is that they are guaranteed to pay a death benefit since they last until the end of the policyholder’s life.

Plan now to avoid problems later

Do you know what your health will be like in 20 or 30 years? Your financial situation? Family? By planning and purchasing the right policy now, you can save money in the long run and provide adequate financial security for your loved ones.

To get started with some free advice, give me a call at (516) 484-5200 or email me at

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