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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 coverage to meet your needs.

Before you buy life insurance, you have to make some key decisions. The size of the plan, the kind of coverage, and the company.

The two main types of life insurance are term plans and whole life policies. Each of them has different advantages and disadvantages. Buying a life insurance policy can be simpler than you may think.

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 buying 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 premiums.

Cost Comparison

When you’re looking to get affordable life insurance, the type of plan that you buy is 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 has different pricing systems and every applicant is 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 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 comes 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 will 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. If you pay the fees 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. Getting lower insurance premiums means 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.

Regardless of which company 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 lung cancer and heart conditions.

Unless you apply for no exam coverage, they are going to send a nurse to do a simple health exam.

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 insurance policy or a plan that’s going to break your bank every month.

There are thousands of different insurance companies on the market, which means you could spend weeks trying to find the best plan for you.

You have two options when shopping for a plan. Either do it yourself or letting a professional help 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. Are you confused about term life insurance or whole life insurance?

It might seem like a simple decision, but it completely changes the cost and protection of your plan. If you’re still spinning with trying to make this decision, we are here to assist.

We’ve worked with all kinds of families, applicants, and policies. We’ve seen just about every possible situation.

Why would you spend time researching and calling when you have someone on your side who’s already an expert?

The same tip we give all of our customers is “don’t wait to get life insurance.” We’ve ironed out all the details to make it as easy for you as possible.

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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