Term Life vs. Whole Life Insurance

Life insurance can help Massachusetts families plan for their future by providing financial support during challenging times. Term life and whole life are two widely used options, each structured differently.

What Is Term Life Insurance?

Term life insurance may cover an insured for a specific number of years. Many people choose it for the straightforward coverage at a usually low cost. Term policies focus solely on providing a death benefit if the insured dies during the term. Once the term ends, coverage stops unless the policyholder renews or purchases a new policy.

What Is Whole Life Insurance?

Whole life insurance may remain in effect for an insured’s lifetime, provided premiums are up to date. It includes a cash value component that accumulates over time, which policyholders can access through loans or withdrawals. Premiums are usually higher than those for term life because the policy lasts indefinitely and includes a savings-like feature.

What Factors Impact Policy Costs?

Many factors influence life insurance premiums, including the insured’s age, health and policy type. Younger applicants usually pay less, while health issues like smoking or chronic conditions can raise rates. Term life policies generally have lower premiums because coverage lasts for a set period, whereas whole life policies often cost more due to lifetime coverage and their cash value component.

We’re Here to Help

Life insurance choices depend on personal goals, financial priorities and the type of long-term support you want for your loved ones. If you would like guidance as you compare term life and whole life insurance, R.M. Cataldo Insurance Agency can help you review available options and answer your questions. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.