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Bibby Brilling / Arden Insurance / Maypearl Insurance Blog

All You Ever Wanted to Know About Insurance

Choosing Between Term and Whole Life Insurance

One of the most important decisions you can make as an adult concerns whether you will select term or whole life insurance. Both options have pros and cons, and it is ultimately up to the individual to pick out the best options for them.

Term life insurance is a policy that gives the person the full benefits of a life insurance policy for a set period of time. This term is a set amount of years, wherein the person decides how long their policy will extend, and when it will end.

Full life insurance is acquired with the understanding that someone will pay into their policy for as long as they live, while receiving the full benefits form their plan during that time.

The main difference between the two options (besides the differences in time span) is that the term life insurance will only pay out death benefits once someone has passed, while full life insurance will offer large cash amounts to beneficiaries as well. Term policies are going to be cheaper with their premiums, while full options will have more perks to them.

It comes down to pricing and available perks, as well as the ability to renew or pay into different funds, based on how long someone has lived for. 

Essentially, the choice is yours, as you look to give your loved ones the best possible situation when it comes time for these benefits to help them. There is no perfect answer for anyone, but there are the options that will best suit their situation.