What is the difference between term and whole life insurance?

Term life insurance and whole life insurance are two distinct types of life insurance products offered by many companies, including Western & Southern Financial Group. Understanding the differences between them can help individuals make informed decisions regarding their insurance needs. Term life insurance provides coverage for a specified period, such as ten, twenty, or thirty years. During this term, the policyholder pays regular premiums in exchange for a death benefit that is paid to beneficiaries if the insured individual passes away within that period. If the term ends and the insured is still alive, the coverage ceases and the policyholder does not receive any benefit. This type of insurance is typically more affordable than whole life insurance because it does not include any cash value component. In contrast, whole life insurance offers coverage for the lifetime of the insured individual, as long as the premiums are paid. One of the key features of whole life insurance is that it includes a cash value component, which grows over time at a guaranteed rate. This cash value can be borrowed against or withdrawn, providing policyholders with financial flexibility. However, whole life insurance generally comes with higher premiums compared to term life insurance. Ultimately, the choice between term and whole life insurance depends on individual financial goals, budget, and personal circumstances. Those seeking more affordable, temporary coverage may prefer term life, while those desiring lifelong protection and a savings component might lean towards whole life. For additional information, it is beneficial to explore the official website of Western & Southern Financial Group.