What is the difference between term and whole life insurance?

Term life insurance and whole life insurance are two distinct types of life insurance that serve different purposes and offer unique features. Term life insurance provides coverage for a specific period, or term, which is typically between one and thirty years. If the insured individual passes away during this term, the beneficiaries receive a death benefit. However, if the term expires and the insured is still living, there is no payout, and the policy simply concludes. Term insurance is generally more affordable, making it an attractive option for those seeking temporary coverage, such as for mortgage protection or raising children. Whole life insurance, on the other hand, offers lifelong coverage as long as the premiums are paid. This type of insurance also includes a savings component, accumulating cash value over time. Whole life policies are more expensive than term policies due to this added benefit. The cash value can be borrowed against, or even withdrawn, providing additional financial flexibility. However, accessing the cash value may reduce the death benefit. Ultimately, the choice between term and whole life insurance depends on individual needs, goals, and financial situations. It is important to evaluate the coverage duration, budget, and financial objectives when making a decision. For further information on these types of insurance, one might consider exploring the official Equitable Life & Casualty Insurance Company website.