Term vs. Whole Life Insurance: What's the Difference?
The short version
Term life insurance covers you for a set period of time - often 10, 20 or 30 years - and pays a death benefit if you pass away during that term. Whole life insurance is a type of permanent coverage designed to last your entire life, and it can build cash value over time.
Why people choose term
Term policies typically cost less than permanent policies for the same death benefit, which makes them a common fit for covering a specific need with an end date - like the years until your kids are grown or your mortgage is paid off.
Why people choose whole or other permanent life
Permanent coverage doesn't expire as long as premiums are paid, and many policies are designed to build cash value you may be able to access later. Premiums are usually higher than term for the same death benefit, since the coverage is built to last longer.
How to decide
The right answer depends on your budget, how long you need the coverage, and whether cash-value growth is one of your goals. Because underwriting and pricing vary by carrier, comparing quotes across multiple companies - rather than relying on one company's answer - is usually the best way to see what's actually available to you.
This article is for general education and isn't personalized financial or insurance advice. Speak with a licensed Pursuit Life Group broker about what makes sense for your situation.