Life insurance
Life Insurance for Families: Term vs. Whole
Life insurance pays your family a tax-free amount if you pass away. There are two main kinds: term, which is temporary and low-cost, and whole, which lasts for life and builds value. Here is how to choose.
The quick version
If you only read one thing, read this
- 1
A tax-free payout to the people who depend on you, to replace income, pay off a mortgage, or cover final costs.
- 2
Price depends on your age, health, the coverage amount, and the term length. Buying young locks in the lowest rate.
The details
The stuff that matters, one piece at a time
Benefits
A tax-free payout to the people who depend on you, to replace income, pay off a mortgage, or cover final costs.
The honest take
What's good, and where it falls short
The good stuff
- Term gives the most coverage for the lowest cost
- Whole life never expires and builds cash value
- The payout is generally tax-free
The catch
- Term ends and may need replacing later
- Whole life costs much more than term
- Rates rise as you age
Common questions
What folks ask us most
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