Advantages of Term Life Insurance over Whole Life Insurance

Published on Feb 27 2012 // Written By // Life Insurance, Supporter

When shopping for the right life insurance policy, people often encounter road blocks when making a decision between while life insurance and term life insurance. This is because both of these types have their own advantages and disadvantages. The best way to figure out, which way to go is to assess your personal situation and consider getting as many life insurance quotes as you can in order to get the best deal.

Now, quality wise, whole life insurance beats term life insurance because primarily the coverage is for this type lasts a lifetime or as long as you are paying for your premium. As compared to term life wherein after the contract expires, you would have to reapply for another. But then a lot of people consider using term life insurance more than whole life. If you’re wondering why, well then read on:

Although term life insurance expires at the end of your contract which could normally last from 1 to 35 years, the quality of the insurance when in application is the same. The only difference with the quality is that your money does not earn cash value. But if the reason why you are applying for insurance is to ensure that if in case of unfortunate event you will not leave your loved ones without financial assistance then term life insurance is as reliable as its counterpart.

The term life insurance rates are also lower than whole life policies. The rate is fixed for the duration of your contract and you can simply reapply later on for a permanent or another term life if you want to. The good thing about this is that you can change your insurer afterwards if you are not satisfied with their service, unlike with whole life wherein you would have to work with the same company whether or not you like their service.



Tushar Mathur has been blogging about Personal Finance since January, 2007. This has helped him recognize what topics readers like and relate to. The goal is to spot good news-worthy info and get it out to the public as soon as possible. Tushar Mathur maintains this Personal Finance blog called Everything Finance. The blog articles fall under these categories: Investing, saving money, shopping, blogging and making money online. Send an email at

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