What is the difference between term and whole life insurance?

Term life insurance and whole life insurance are two distinct types of life insurance policies that serve different purposes and offer various benefits. Term life insurance provides coverage for a specified period, such as ten, twenty, or thirty years. If the insured individual passes away during this term, the beneficiaries receive a death benefit. However, if the insured outlives the term, the policy expires, and there is no payout or value to the policy. This type of insurance is typically more affordable since it does not accumulate cash value. On the other hand, whole life insurance offers lifetime coverage as long as the premiums are paid. In addition to providing a death benefit, whole life insurance policies accumulate cash value over time on a tax-deferred basis. This cash value can be accessed by the policyholder through loans or withdrawals, and it grows at a guaranteed rate. Whole life insurance tends to be more expensive than term life due to these additional benefits. When considering which type is more suitable, individuals should assess their financial goals, needs, and budget. For more detailed information on policies offered by National Guardian Life Insurance Company, individuals may look on their current web page for specifics and contact information.