Term life covers a set period
Term insurance can fit a need that has an end date, such as replacing income while children are financially dependent. If the insured person dies during the term and the policy is in force, the insurer pays the beneficiaries according to the policy. Most term policies do not build cash value. Ask what happens when the initial term ends, whether you can renew or convert the policy, and how premiums could change.
Whole life is designed for lifetime coverage
Whole life is a type of permanent insurance that can build cash value. It generally costs more than term coverage for the same initial death benefit. Compare what the contract guarantees with any illustrated, non-guaranteed amounts. Ask how loans, withdrawals, or missed premiums could affect coverage or what beneficiaries receive.
Compare the same amount of protection
Start with what you want to provide for, how long the need may last, and a premium you can keep paying. Request written illustrations or quotes for the same death benefit. If you already have a policy, review the cost and consequences of replacing it before canceling anything.
Coverage depends on your policy’s terms, limits, and exclusions.