Comparing Types Of Life Insurance Term Life
Whole Life
Premium
Lower initially. Increases with each renewal.
Higher initially than Term Life. Normally does not increase.
Protection For
A specified period.
Entire life if you keep the certificate.
Certificate Benefits
Death benefits only.
Cash Value and Loan Value if Needed Death Benefit.
Advantage to Buyer
Low premium outlay. Initially buyer can purchase a larger amount of coverage for a lower premium.
Helps buyer with financial discipline. Generally fixed premium amount. Cash value accumulation. Buyer can take loan against certificate.
Disadvantages to Buyer
Premium increases with age. No cash value.
Costly if you surrender early. Usually no cash value for at least three to five years. May not meet short-term needs.
Available Options
May be renewable or convertible to a Whole Life certificate.
May pay dividends. May provide a reduced paid-up certificate.
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CLIENT RESOURCE SECTION
Revised 05/01/2023
