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Life Insurance

What's the difference between term and whole life insurance?

Term life insurance covers you for a specific period, like 10, 20, or 30 years, at a lower premium, but the coverage expires at the end of the term with no payout if you outlive it and typically no cash value.

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Whole life insurance covers you for your entire life as long as premiums are paid, with a level premium that never increases and a cash value component that grows slowly over time on a tax-deferred basis.

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Term is often chosen for temporary needs like a 20-year mortgage or raising kids, while whole life is chosen when the goal is permanent, guaranteed coverage, such as leaving an inheritance or covering final expenses.

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