Allan A. Butcher
Insurance Agent / Financial Professional
Call me at:  
          (516) 444 -9203
New York Life Insurance

Understanding Basic Life Insurance Optons

Term Life Insurance vs. Whole Life Insurance

 
Whole Life
Term Life
The Basics
Whole Life
Guaranteed lifetime protection and access to cash value that's guaranteed to grow.
Term
Coverage for temporary needs with options that allow you to prepare for the future.
Length of coverage
Whole Life
Guaranteed lifetime protection as long as your premiums are paid.
Term
A set period of time, usually 10 to 20 years.
How you pay
Whole Life
Premiums are guaranteed never to increase, and there are options for how often and how long you pay—monthly, quarterly, or yearly.
Term
Pay premiums for as long as your coverage lasts. With many policies, premiums are locked in for a set period, and may be less expensive than whole life premiums during that period.
Cash value and growth
Whole Life
Guaranteed cash value growth that can be accessed when needed and may increase through dividends, when paid. These benefits accrue tax deferred, allowing you to maximize your savings.
Term
None.
Life insurance benefits
Whole Life
Death benefits can be transferred to beneficiaries tax free.
Term
Death benefits can be transferred to beneficiaries tax free.