What’s the Difference Between Whole Life and Term Life Insurance?
Both term and whole life insurance provide financial protection for your loved ones—but they work in very different ways. Understanding those differences is essential when choosing the right life insurance policy in Arizona.
| Feature | Whole Life Insurance | Term Life Insurance |
|---|---|---|
| Coverage Period | Offers lifetime protection, as long as premiums are paid. | Covers a specific term—typically 10, 15, 20, or 30 years. |
| Premiums | Premiums stay level for life and are typically higher due to permanent coverage. | Premiums are locked in for the term, making it more affordable early on. |
| Cash Value | Builds tax-deferred cash value over time, which can be accessed while living. | No cash value—purely provides a death benefit. |
| Flexibility | Less flexible once the policy is in place. | Can be adjusted or converted to permanent insurance if your needs change. |
What Is Term Life Insurance?
Term life insurance offers straightforward, affordable protection for a set period—often until your children are grown, your mortgage is paid off, or you retire. It’s designed to help your family replace lost income and manage essential expenses if something happens to you.
Because you’re only paying for coverage when you truly need it,
term life insurance in Arizona is one of the most cost-effective ways to safeguard your family’s future.
Who Can Buy Term Life Insurance?
Most individuals between
ages 18 and 80 can qualify for a term policy. Even if you’ve had health challenges—like diabetes, high blood pressure, or past cancer—you may still be eligible. We help clients across Arizona find
term life coverage that fits both their needs and health profile.
How Does Term Life Insurance Work?
When you buy a term policy, you select a coverage length (10, 15, 20, or 30 years) and a death benefit amount. As long as you continue to pay the premium, the policy stays active. If you pass away during the coverage term, your chosen beneficiary will receive the full benefit amount—tax-free.
This makes
term life insurance ideal for temporary coverage needs, such as income replacement or protecting against large debts like a home mortgage.
