What's the difference between term life insurance and whole life insurance?
I don't know. I'm sure that you mean assurance, you insure for something that may happen, you are assured of death.
Term is a form of life insurane issued for a fixed period of time, 10-30 years in most cases. They do not build cash value, and is the least expensive form of life insurance. It can come with convertibility and even refundability provisions in some policies. It is generally the most suitable form of insurance for the average american.
Whole Life is a form of inusrance that is known as a type of permanent insurance. It covers you for the duration of your life and builds cash value with some tax deferred benefits. In general all forms of permanent life insurance ( Whole, Universal & Variable Life) are much more expensive to buy. They are not the best financial vehicles for saving for retirement in terms of cost and efficiency. However, they can be useful in some more advanced estate planning strategies for the higher net worth client.
Term life insurance policy cover is for a fixed period as availed during buying process. Normally it is 5/10/ yrs. Whole life insurance is an insurance policy which is for a longer duration of year. People normally tend to pay premium for a longer duration such as 20-25 years. The sum assured is normally received after certain years as per the policy cover. http://www.bharti-axalife.com/
Term life insurance offers protection for a particular period of time (e.g., 5, 10, 15, 20, or 30 years) at an cost effective price.
Whole life insurance offers protection for your entire lifetime and accumulates a cash value that the policy owner can borrow against.
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