View All Pages

Whole Life Vs. Term Life Insurance

Whole life insurance offers more flexibility than term life insurance.

Life insurance can be an important investment. No one knows when the unexpected will happen. Property may burn down, businesses may be lost, cars may be wrecked. But all of them may be rebuilt or replaced. Loss of life cannot.

Call us today for a life insurance policy quote, or request a quote online.  

Understanding the Difference Between Term & Whole Life

If you are considering a life insurance policy, it is critically important that you understand key differences in different types of policies. The two primary forms of life insurance are whole life and term life. Both of these protect the policy holder’s family in the event of death, however, they do differ.

Stated simply, once you are approved for whole life insurance, you are financially protected up to a specified amount in the event of death at any time. This of course requires that the policy holder remain current on paying premiums. Whole life policies may also grow in value, possibly adding a money market return or some other amount, over the life of the policy. This provides the sometimes-overlooked benefit of the ability to borrow against the cash value of the policy. Common reasons for this include a down payment for a home or for family planning purposes.

Term life insurance likewise provides financial coverage up to a specified amount but unlike whole life insurance it does not provide coverage for the entirety of an individual’s life. Instead, it provides coverage over a specified term (hence “term”), typically round figures such as 10, 20, or 30 years. Another important distinction is that term life insurance does not build cash value over its life.


You get what you pay for of course. Whole life insurance provides the peace of mind that an individual is protected for the rest of their life. As a result, whole life insurance premiums are higher initially. While, term life insurance premiums are lower initially, they typically increase at each renewal point.

Situations differ and in each situation, one type of policy may make more sense than the other. A young person just starting out, for instance, may lean toward a term life policy – with its lower premiums – up to the amount of his credit card and other debts. As he ages and his income grows (hopefully!) and his responsibilities increase, a whole life policy and with more coverage may be in order.

Request a Life Insurance Quote Today

Our team is deeply experienced in guiding you through the important life insurance policy distinctions and the process to receive full coverage. We are here to help and look forward to learning more about your situation and how Bayside Insurance Associates products fit your needs.

Request a Quote