Term vs whole life insurance, explained

The two main types of life insurance work very differently, and cost very differently too. Here is the plain-language version.

By the InsuranU team Updated July 20264 min read

Term and whole life solve different problems, and knowing the difference saves U from buying the wrong one.

Term life

Covers U for a set period, typically 10 to 30 years, at a much lower cost. If U outlive the term, coverage simply ends unless U renew or convert it.

Whole life

Covers U for your entire life and builds cash value U can borrow against, but costs significantly more per dollar of coverage.

Which one fits most people

For most families, term life covers the years debt and dependents are heaviest, at a price that leaves room for other goals. Whole life suits specific estate or cash-value needs.

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Keep going

Choosing a term length

How long your policy should actually run.

Read the guide

Cost

How much life insurance costs

See the real ranges by age and policy type.

Read the guide

Cost guide

How much life insurance costs

See the real ranges, with a live estimator.

Read the guide

Common questions

Can I convert term to whole life later?

Many term policies include a conversion option. Check yours before U need it.

Why does whole life cost so much more?

It lasts your whole life and builds cash value, both of which raise the price significantly.

U deserve cover that fits

Tell us about your family and your life. We will match you with quotes built around U.

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