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Term Insurance Vs. Whole Insurance

We don’t like to think about that unexpected end. While it might be a fact of life, it is a fact we would much rather ignore and just enjoy the precious time that we have now. That doesn’t mean we can just completely overlook the fact that it could happen at any time. It also doesn’t mean we have to live in fear of it, just that it’s good to be prepared. There are some simple things you can do that will prepare you and your family for the unexpected without having to keep it constantly on your mind. The most popular and the most effective of these is by getting life insurance. Life Insurance pays a certain amount to your family, spouse, or another designated party when you pass away. There are two basic versions of life insurance, so let’s take a quick look at both of them.


Term Life Insurance: Term life insurance covers you for a certain term, depending on what term you choose. The three basic terms are 10 years, 20 years, and 30 years, with 30 years being the most popular. This means if you sign up for a 30-year Term Life Insurance plan, you must die within that 30 years for it to take effect. If you live past that 30 years, good for you, but you might lose the money you put into the Term Life Insurance Plan. The positive side of a term life insurance plan is that it is typically the more affordable life insurance you can purchase and might not require a medical exam, making them easier to obtain. The downfall is that if the term ends and you don’t renew, you might lose that money you spent on premiums. You can get a Premium Return Policy that will pay you back what you have paid in premiums, but it will cost more than a normal plan.

Whole Life Insurance: Whole Life Insurance or Permanent Life Insurance is a life insurance plan that ends when you do. Instead of operating for just a term it will keep going until you die and will pay out once that happens. While this is a benefit, getting a whole life insurance plan might be a little more difficult due to it needing a health examination and could take a few years to build up cash value. The benefit is that you don’t have to worry about dying in time, or losing the money you have invested into it.

If you have a Term Life Insurance plan and it is looking like you are going to survive it, you have three options. You can let it end, look at renewing it, or ask about turning it into a Whole Life Insurance policy. Many Term Life Insurance policies will have an option to turn it into a whole life insurance policy. If you are ready to take that step to protect your family and have the peace of mind without having to worry about the unexpected, contact O’Quinn Insurance Services.

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