Understanding Term vs. Whole Life Insurance 

Life insurance is a practical financial tool designed to provide financial support for beneficiaries after the insured person’s death. Yet many people delay purchasing a policy simply because they’re unsure which type (term or whole life) fits their needs.

The agents at McCartan Insurance Group can help evaluate your situation and offer life insurance solutions to meet your unique needs.

Term Life Insurance

Term life insurance covers a set period, usually 10, 20 or 30 years. If the insured person passes away during that term, the beneficiary can file a claim to receive the policy’s death benefit. Once the term ends, coverage expires unless renewed or converted into a permanent policy.

Because term life is designed to protect against financial obligations during high-responsibility years (like paying off a mortgage or raising children), it’s generally more affordable than whole life insurance. Premiums are fixed for the duration of the term.

Whole Life Insurance

Whole life insurance provides lifelong coverage as long as premiums are paid. Unlike term life, it can build cash value over time through a savings component that grows tax deferred. Policyholders can borrow against this cash value or use it to pay premiums later in life.

While whole life policies are more expensive, they offer long-term benefits for those who value stability and predictability. They can play a role in estate planning, leaving an inheritance or covering final expenses.

Choosing Appropriate Life Insurance

When deciding between term and whole life insurance, consider your stage of life, income, family size and financial goals. You don’t always have to choose one over the other. Many people start with term life insurance because it is affordable, then convert part or all of it into whole life coverage later when their income and financial goals change.

Contact McCartan Insurance Group today to discuss your options and find the right balance between protection, flexibility and cost.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.