people we’ve helped to protect what’s most important.
Wondering about the term vs. whole life insurance pros and cons? While term life insurance and whole life insurance both often come with a tax-free cash payment to help protect your family financially, they each offer different advantages for different coverage needs. If you’re weighing the pros and cons of term life insurance and whole life insurance, here’s a closer look at how each option works.
Wondering about the term vs. whole life insurance pros and cons? While term life insurance and whole life insurance both often come with a tax-free cash payment to help protect your family financially, they each offer different advantages for different coverage needs. If you’re weighing the pros and cons of term life insurance and whole life insurance, here’s a closer look at how each option works.
With term life insurance, you get to choose how long the policy lasts. Generally, premiums are guaranteed to be level for a set period of time, and then may increase after that time. That means you can cover financial obligations for a certain period, like while you’re paying off a mortgage or have children who depend on your income. You can also choose from a variety of coverage amounts and monthly premium options, and the premiums are typically more affordable for term life insurance vs. whole life.
If your term life insurance policy is still active when you die, the death benefit will go to your beneficiary or the person or people you choose to receive those benefits. These can be used for day-to-day living expenses, credit card debt, mortgage payments, or any other financial obligations. However, if you live past your policy term, then your policy simply expires and you stop making payments. In some cases, you may be able to renew your term life insurance if you need more coverage.
The benefits of whole life insurance vs. term are just as the name suggests. Whole life, which is a type of permanent life insurance, offers lifelong protection. As long as you pay your premiums for whole life insurance, your family or loved ones receive a tax-free lump cash payment after you die.
Whole life policies have the added benefit of having a cash value that grows over time. This cash value is tax-deferred, which means you generally don’t have to pay taxes until you access it. If you decide that you no longer need life insurance and end your policy, any cash value you’ve earned is now yours. You may also be able to borrow from the cash value during your lifetime.
| Term Life | Whole Life | |
|---|---|---|
| Length of Coverage | You choose a term length (10, 15, 20, 30 years) based on your needs. | Your coverage lasts your lifetime, as long as you pay your premium. |
| Premiums | Plans are a flexible, affordable way to get coverage exactly when you need it. | You may pay a higher premium, but this is a permanent solution for lifetime coverage. |
| Medical Exam | A medical exam is not always required. | A medical exam is usually required — but not with Fidelity Life. |
| Cash Value | A term life policy does not build a cash value. | A whole life policy can build tax-deferred cash value. |
| Policy Options | Some term policies let you increase or decrease your coverage and premiums over time to meet your family’s evolving financial needs. | Whole life insurance helps prepare you for end-of-life expenses and allows you to pass on an inheritance to your family and loved ones. |
Complete our simple form to begin the process
Complete our simple form to begin the process
Complete our simple form to begin the process
Life may change, but the need to protect your family doesn’t. Explore term, permanent, and final expense plans to find the best type of life insurance policy for your family, now and in the future
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With term life insurance, you get to choose how long the policy lasts. Generally, premiums are guaranteed to be level for a set period of time, and then may increase after that time. That means you can cover financial obligations for a certain period, like while you’re paying off a mortgage or have children who depend on your income. You can also choose from a variety of coverage amounts and monthly premium options, and the premiums are typically more affordable for term life insurance vs. whole life.
If your term life insurance policy is still active when you die, the death benefit will go to your beneficiary or the person or people you choose to receive those benefits. These can be used for day-to-day living expenses, credit card debt, mortgage payments, or any other financial obligations. However, if you live past your policy term, then your policy simply expires and you stop making payments. In some cases, you may be able to renew your term life insurance if you need more coverage.
In coverage provided since 2010
In coverage provided since 2010
Source: internal data as of February 2025
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Life may change, but the need to protect your family doesn’t. Explore term, permanent, and final expense plans to find the best type of life insurance policy for your family, now and in the future
This affordable life insurance policy provides financial protection for a specific time period.
Permanent insurance offers lifelong protection and an opportunity to build cash value over time.
After a loss, final expense insurance can cover more than just end-of-life expenses.
We’re proud to work with top-rated providers like Fidelity Life, Protective, Mutual of Omaha, Corebridge, Prudential, and Transamerica. Each of these companies meets our high standards for financial strength, quality, and exceptional customer support. Click a logo below for more information.
Life may change, but the need to protect your family doesn’t. Explore term, permanent, and final expense plans to find the best type of life insurance policy for your family, now and in the future
Life insurance is a type of insurance policy that protects your loved ones financially if something happens to you. If you pass away while your life insurance policy is in effect, your beneficiary will get a cash payment that’s typically tax-free and comes with no strings attached. They can use those funds to pay for day-to-day living expenses, a mortgage, college loans, your final expenses, or any other financial needs.
You can choose from either term life insurance, an affordable type of life insurance that you can buy for a set period of time, or permanent life insurance, which provides lifelong coverage as long as you pay your premiums. Consider comparing life insurance quotes online to better understand what fits your budget and needs.
Buying life insurance can help you meet these needs and stay prepared for what the future brings. eFinancial is here to help you get started.
Wondering if you can afford life insurance coverage? The peace of mind that life insurance provides is priceless, and it often costs less than you think. In fact, a recent study found that most people think the cost of life insurance is three times higher than it actually is. A $250,000 term life policy for a healthy 30-year-old woman can start as low as $15 a month with eFinancial.
Some factors that affect the cost of life insurance include:
Learn more about the life insurance buying process here.
At eFinancial, we work hard to make sure you get an accurate online life insurance quote.
We believe in personalizing your entire life insurance experience, which means we’ll go beyond the basics. Of course, keep in mind that an online quote is only a starting point. Our online guide can estimate your life insurance rates, but our licensed agents will work closely with you by phone to further customize your quote around your exact needs.
Not necessarily. The law states that the price of any insurance policy is the same whether you buy from the life insurance company itself, an agent, or a broker. That means you’ll find the same rates shopping directly with a life insurance company or shopping with eFinancial, while also enjoying the convenience and guidance our agents can provide. At eFinancial, our team can help you compare and purchase term life insurance, permanent life insurance, and final expense insurance from top-rated companies. Our goal is to make buying life insurance easier, faster, and more affordable, so you can protect your family with confidence.
A medical exam may be required to see if you qualify for the policy you want and to determine the rate you will pay. This exam is about 20-30 minutes long and performed by a certified paramed. The paramed will record your blood pressure, pulse, height, and weight and record answers to questions about your medical history. Depending on the health information you give in your application, you may also need to provide blood and urine samples and take other tests. The exam is done at a location of your choice and performed at no cost to you. Learn more about medical exams.
Life may change, but the need to protect your family doesn’t. Explore term, permanent, and final expense plans to find the best type of life insurance policy for your family, now and in the future
If you die during the term period, your beneficiary will receive a tax-free payout and the peace of mind that comes with it — guaranteed.
Your loved ones won’t have to worry about paying tax on your insurance payout after your death, because a term life insurance payout is entirely tax-free.
Maybe you want protection for your family, but you don’t want to commit to a permanent policy. That’s okay — our flexible term lengths are a great place to start.
Term life insurance is easy to understand, and our agents are here to make sure you’re familiar with the types and lengths available. Even first-time buyers can rest assured their life insurance is meeting their needs.
people we’ve helped to protect what’s most important.
