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Term Life vs. Whole Life

Choosing life insurance is an important decision for your family’s future. When deciding whether term life or whole life insurance better fits your needs, consider where you are now and where you may be down the road.

Whichever type you choose (in some cases, having both makes sense), the most important thing is to ensure that your current and future financial obligations will not burden those you leave behind.

If you need guidance, a free, no-obligation conversation with one of our life insurance experts can help. You can schedule a call at your convenience here.

SBLI consistently offers some of the lowest term life and whole life insurance rates in the country for both men and women.

Term Life Insurance

Term life insurance offers protection for a specific period of time, or term. You pay a premium during the period of time that you’re covered, and SBLI will pay benefits to your loved ones if you pass away. With SBLI’s guaranteed level term insurance, you can lock in the same low rate for the entire term you select: 10, 15, 20, 25, or 30 years. Your premium is guaranteed not to increase, regardless of the economy or other factors.

Benefits

  • It’s inexpensive. Premiums are typically lower than those of a whole life policy.
  • You can lock in your rate. With level premium term, you can lock in the same premium for the entire length of the term for as long as 30 years.
  • Term life insurance provides coverage for big expenses in life, like a mortgage or student debt, and would prevent your loved ones from inheriting those expenses.
  • It’s flexible. This type of policy can be converted to a whole life policy or a conversion universal life (conversion UL) policy before expiration.

Things to Consider

  • At the end of your chosen term, if you need more life insurance, your rate may increase because you will be older.
  • A term policy has no cash value, and you cannot borrow against it.

Whole Life Insurance

Whole life insurance is financial protection that covers you for your entire life. When you own a whole life insurance policy, your payments never change. As long as you pay your premiums when due, SBLI pays your loved ones benefits when you pass away. A whole life insurance policy builds cash value that, in most cases, grows without being subject to taxation. Your death benefit increases over time, and you can borrow up to that value to use as you see fit.

Benefits

  • Lifetime guarantee. Your policy is guaranteed to remain in force for life as long as you pay your premiums.
  • You can lock in your rate. Your premiums won’t increase as you age.
  • Your whole life policy has an immediate cash value, and you can borrow from it at any time.
  • You may cancel or surrender your policy and receive the cash value at any time.

Things to Consider

  • A whole life policy has higher premium payments.
  • Your premium payments are fixed, even if your coverage needs and financial obligations change over time.
  • Any money borrowed from the policy will be deducted from the death benefit.