Life insurance helps protect your loved ones by providing financial support when it’s needed most.Shopping for this coverage often raises the question: term vs.whole life insurance, which is right for me?With September being Life Insurance Awareness Month, here is a clear comparison to help you decide which type of policy best fits your needs and budget.What is Term Life Insurance?A term life insurance policy provides coverage for a set period, typically 10, 20, or 30 years.

During that time, you stay protected as long as premiums are paid.Coverage ends when the term expires or upon the insured’s death.Term life insurance is generally more affordable and straightforward than whole life insurance.Premiums depend on factors such as age, gender, and health.

The best way to know your cost is to request a personalized quote.However, term life has limitations.It does not build cash value, and the coverage ends once the term expires.If you outlive your policy and want to renew, premiums may be significantly higher.Who Benefits Most from Term Life?What is Whole Life Insurance?Whole life insurance provides permanent coverage that lasts a lifetime, unlike term life insurance.

Premiums remain fixed, and the policy builds cash value over time.Cash value is a savings feature where part of each premium goes into an account that grows at a fixed interest rate.This money can be borrowed or withdrawn during the insured’s lifetime.Policy amounts can range from the tens of thousands to millions of dollars.The added benefits of whole life insurance can also mean a higher cost.

Whole life is more expensive than term life because it provides lifelong coverage and builds cash value.Like term life, premiums depend on your health, age, and gender.For example, a $500,000 policy can cost several thousand dollars annually.Who Benefits Most from Whole Life?Key Differences Between Term and Whole Life InsuranceFor a quick overview, see the infographic below highlighting the key differences between term and whole life insurance.How to Decide Which is Right for YouWhen comparing term vs whole life insurance, consider your personal situation.

Assess your financial goals, budget, and coverage needs.Think about your age, dependents, debts, and long-term plans.Speaking with an insurance agent or using a coverage calculator can help you determine which type of life insurance is right for you.Compare quotes and review coverage annually to make sure your policy still meets your needs.