What is the difference between term life insurance, and whole life insurance?
A:
The basic difference between term life insurance, and whole life insurance, is that term life insurance provides death benefit only. Whole life policies contain an “investment” portion. Your specific needs determine the type of policy that is best for you. Term life insurance is cheaper, and is based on the actuarial possibility of the insured person dying. With whole life insurance, you are paying not only for death coverage, but also for some investment aspect. The type of policy that is best depends on age, gender, health issues, and occupation to name a few variables.
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