The Cost of a Whole Life Insurance Policy vs. a Term Policy

Written by Growth 360, LLC

When you’re shopping for life insurance, it’s important that you get the best type of coverage to meet your needs. There are several types of plans that you’ll need to compare before you decide which policy is going to work best for you.

The two main types of life insurance are term plans and whole life policies. Each of them has different advantages and disadvantages. Life insurance is one of the most important investments that you’ll ever make for the future of your family.

It’s our mission to ensure that you’re getting the best plan to meet your needs. One of the biggest decisions that you’ll have to make when you’re shopping for life insurance is deciding between a term plan or a whole life plan. One of the biggest contributing factors in making that decision is the cost of the plan.

Cost Comparison

million dollar life insuranceWhen you’re looking to get affordable life insurance, the type of plan that you buy is going to play a significant role in that. Deciding between term and whole life insurance can be difficult, but looking at the cost can clear up some of those decisions.

It’s difficult to give an exact answer to how the costs are going to compare, because each company is going to have different pricing systems and every applicant is going to be different, and that means that the prices could vary drastically.

While we can’t give you an exact price amount, we can tell you that whole life insurance plans are going to be much more expensive than a term insurance policy. Whole life plans are a permanent form of coverage, which means that they will never expire. It’s a great benefit, but that continuous coverage is going to come at a higher price.

We don’t know your particular situation, but we can give you a general idea of how much you would pay for a term plan versus how much you would pay for a whole life insurance policy. If you’re looking to buy $250,000 worth of insurance through a term insurance policy (which is a small life insurance policy), then you’ll pay around $21 a month as a 30-year-old policyholder.

On the other hand, if you were looking to buy the same amount of coverage as a whole life insurance policy, you’re going to pay around $280 every month. While this is only one example, you’ll find similar results with just about any company and any applicants. If you’re younger than 30 years old, your premiums are going to be more affordable for both types of policies, but whole life insurance is still going to be around $200 more expensive every month.

Why Buy Whole Life Insurance?

After looking at the price comparison between the two plans, you might be wondering why in the world anyone would ever buy a whole life insurance policy. There are several unique advantages of these plans that make it an excellent option for some applicants.

One of the obvious benefits is that the plan is never going to expire, regardless of how long you hold the plan. As long as you continue to pay the premiums for the policy, you’ll have insurance coverage. For anyone that doesn’t want to worry about losing life insurance protection, whole life insurance policies are a great option.

Another key advantage to whole life plans is that they build cash value inside of the policy. The longer that you pay the rates of the plan, the more value that is inside of the policy. You can use the value of the plan to pay the premiums of the life insurance, or you can use it to secure a loan if you ever need it in the future.

Getting Affordable Life Insurance

Regardless of which type of plan that you choose, it’s important that you’re getting the lowest premiums available, and there are several ways that you can trim down your rates. Getting lower insurance premiums is going to mean more money in your pockets. Life insurance is one of the best investment, but that doesn’t mean that you have to pay a fortune for your coverage. Making a few changes can save you hundreds and hundreds of dollars every year on your life insurance.

The first thing that you should do is quit smoking. Regardless of which company that, you go with, or the type of plan that you buy, you’re going to pay more if you’re a smoker. Smokers are at a much higher risk for severe health complications, which means you’ll be a higher risk to the insurance company. They are going to offset that risk by charging you higher premiums. In fact, smokers are going to pay at least twice as much for their insurance coverage versus what a non-smoker is going to pay for the same plan. If you want to save money, it’s time to kick that bad habit once and for all.

The next thing that you should do is slow down on your way to work. When you apply for life insurance, the company is going to pull your driving records. If you have any speeding tickets or accidents in the past year, the insurance company is going to view you as a higher risk for life insurance. That higher risk is going to translate into higher premiums. Slowing down on your daily commute could save you hundreds of dollars every year.

Another easy way to save money is to improve your overall health. Before the insurance company approves your application, they are going to require that you take a medical exam (unless you buy a no exam plan), and the results of those health tests are going to play a major role in how much you pay every month. Better results from the medical exam equal lower premiums. There are two simple ways that you can improve your health, by getting regular exercise and cutting out the junk food. Both of these can help you lose weight, lower your cholesterol, and reduce your risks of being diagnosed with any health complication.

The best way to ensure that you’re getting the most affordable life insurance coverage is to compare dozens of life insurance companies before you decide which plan is going to work best for you. Every insurance company is different, which means that you’ll get drastically varying rates depending on which company that you get the quote from. It’s vital that you find a company that is going to view your application more favorably. It can be the difference in getting an affordable life insurance policy or a plan that’s going to break your bank every month.

There are thousands of different life insurance companies on the market, which means you could spend weeks trying to find the best plan for you. Instead of wasting hours and hours calling agents to get the best rates, let one of our independent insurance brokers do all of the work for you. Our experienced agents work with dozens of highly rated companies across the nation, which means that we can bring all of the best policies directly to you.

Whole vs. Term Life Insurance Coverage

We know that shopping for life insurance is not a fun experience, but we are here to help make the process as quick as easy for you as possible. If you have any questions about term life insurance or whole life insurance, please contact one of our experienced agents today. We would be happy to answer those questions and ensure that you’re getting the best plan available.

You never know what life is going to throw at you tomorrow, which means that you shouldn’t wait any longer to get the insurance coverage that your family will need. If something tragic were to happen to you, and you didn’t have life insurance coverage, your family would be left with a massive amount of debt and other final expenses. All of that debt is going to make the situation that much worse. Losing someone that you love is never going to be easy, but being responsible for a mountain of debt is going to make the situation a thousand times worse.

Contact one of our agents today, and we can get the insurance process started. Don’t wait another day to get the peace of mind knowing that your family will have the money that they need, regardless of what happens to you.

About Growth 360, LLC
About Growth 360, LLC

We work with individuals across the nation to secure the best life insurance rates.

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