November 4, 2021

Whole Life Insurance VS Term Life Insurance

Life insurance gives you the opportunity to give your family some financial stability after you die. Upon your passing, your beneficiary receives a cash benefit. You may ask what is difference between whole and term life insurance? The insurance professionals at Alpine Castle Lake Insurance, which serves Idaho Falls ID, can explain.

Coverage Period

Whole life insures you for your lifespan while term life provides coverage for the number of years your policy specifies. Of whole or term life insurance which is better? Well, that depends on your requirements and budget.


Whole life provides coverage for your lifetime or up to the age stated in your policy. Since this is an advanced age, your beneficiary will likely be paid the death benefit unless you live beyond the capped age, if there is one.

Because whole life insures you indefinitely, its premiums are much higher than those for term insurance. However, the premiums for whole life never change. Term life insurance is less costly than whole life because insurers know that many people will not die before their term policy expires.. Your insurer only pays out if you die while the policy is in effect.

Because of its affordability, term insurance fits the budget  of many families. However, its premiums may rise as you get older. The longer the policy will be in force, the higher your opening premium will be.


If you are obligated to provide a lifetime of care to a family member such as a parent or special needs child,  weigh what whole life insurance has to offer.

If you expect your obligation to be for a limited number of years,  consider the benefits of term life. This kind of policy can certainly fill the financial void left by death for single parents, married parents and stay-at-home parents.

As an example, the death benefit of a term life insurance policy can bridge the gap between your death and the time your offspring is an independent adult. Some people use the policy to guarantee that their mortgage will be paid in the event of their untimely death.

So, as for whole or term life insurance which is better the answer depends on what you need it for. Are short term goals or long term goals more important to you?

Monetary Benefits for You

When asking what is difference between whole and term life insurance?, one standout selling point is that whole life has a cash value. Most term policies do not. After your whole life insurance is in effect for a few years, you may be able to borrow against its value. You may also withdraw money.

Borrowing reduces the policy's face value by the amount of the loan unless you repay it. Cash value may build because the policy may have a guaranteed rate of return or the insurer makes investments that pay dividends using a portion of your premium.

Don't expect high returns because some of your premium goes to other beneficiaries and some to the expenses your insurer incurs in account management. Though loans are tax-free, you have to pay taxes on any withdrawals that are gains.

Options for Policy Changes

If you have whole life that has a cash value and you want to switch to a term life policy, ask an agent if that's possible. Term policyholders may also be able to convert it to a whole life policy. Any policy changes, of course, depend on the terms and conditions set by the insurer. Our agents know thoroughly the policies and conditions of the insurers they work with.

Now that we have explained what is difference between whole and term life insurance?, we invite you to contact us if you have more questions.  Determining the answer to whole or term life insurance which is better can be complicated .

But the good news is that we are an independent agency that works with more than one carrier  to help you find the right insurance. Contact us at Alpine Castle Link Insurance, which serves Idaho Falls ID. so an agent here can help you find the whole likfe or term life that helps secure the financial future of those you care about.