Term vs. Whole Life Insurance: Which Is Best for You?
Term life and whole life are two popular variations of life insurance policies. While the basic idea of providing much-needed cash in the event of your death is the same, there are some big differences between the costs and benefits of each one. Here's a rundown of both varieties, so you can make the best decision for your family.
Term life insurance is perhaps the purest way to protect your loved ones in the event that you die prematurely.
In a nutshell, when you buy a term life insurance policy, the period of protection is temporary (10, 20, and 30 years are most common). After the initial term runs out, policyholders have the option to renew, but by that point, the renewal rate is often prohibitively expensive.
Source: Fool.com
