I need help in choosing the right life insurance policy for me here in California. I was told that I can go either with term or whole life insurance, what is the difference between them?

Gavyn

Salinas, CA

Term life insurance versus whole life insurance is quite a famous issue in terms of life insurance. Term life insurance policy is agreed upon a specified length of time, or what is called term, is being paid out if the policyholder dies with the term period. Term life insurance plan could be renewed if needed prior to its expiration, but at the end of the term, the policyholder normally loses almost all of the premiums paid for the life insurance plan.

In general, whole life insurance policy begins while you’re young, and it increases in value over time. The face value of this type of policy is worth after a specific time, and the cash value, or the amount your beneficiaries would essentially receive, is what you have paid in over time. Over the years, the premiums of a whole life insurance policy increase. But you could come across average whole life insurance policies that would let you pay the same premium for your whole life, if you are willing to pay higher rates in the beginning.

In essence, term life insurance versus whole life insurance is the difference between buying a life insurance plan for five, 10, 20 or more years and buying a life insurance plan when you were still young until you pass away without the need to renew the plan or be concerned about policy lapses.