What is whole life insurance vs term?

This isn’t a whole vs term life free-for-all, okay? Both have their benefits and their places. But a quick rundown is that whole life is a permanent type of life insurance. Meaning, it’s permanent as long as you keep paying your premiums. But what is term life insurance then? Well, it’s coverage that exists for a specific amount of time, i.e., a “term.” Once your term is up, you’re no longer covered.

But I can hear you scratching your head. “What makes term life insurance the coverage it-girl, then?” There’s a couple of advantages you get with term, for sure.

5 reasons term life insurance coverage may be better for young adults

1. Not permanent

Term life insurance isn’t permanent, unlike other types of life insurance. With term you’re covered for a set number of years. Typically that’s 10, 20, or 30 years, depending on the insurer. But that window could be a great option if you’re looking to cover some short-term needs such as rent, income replacement or supplement for childcare, or even funeral costs. If you’re looking to protect your loved ones financially in the event of your untimely death, term life insurance coverage may be a great option for you.

2. Cheaper

Not cheap in a, like, miserly sort of way. We mean it in a “you pay less” sort of way. How much cheaper is term life insurance coverage, anyway? Well, in the marketplace, a 30yo male on a 20-year term has an average annual premium of just $229. Compare that to a 30yo male on a whole life policy whose average annual premium costs $4,038! In some cases, whole life premiums may cost you almost 10x the amount of term life policies. That’s quite the difference. Cost-wise, term life may be better for your needs (and your wallet).

3. Convenient

When you compare whole vs term life insurance, term life can come out a bit more convenient, depending on your needs. See, whole life can come with extra bits about investments and cash values. But term life insurance can be focused more on immediate financial needs. Let’s say you want to make sure your kids are protected until they’re able to provide for themselves financially. You may not need a super high amount of coverage or have it for the rest of your life. In this hypothetical scenario, term life could be more convenient for short- and middle-term needs.

4. Flexible

The only constant is change. Your 30s are going to be different from your 20s, that’s for sure. So you want to make sure you have a life insurance policy that can reflect your needs as they change. Some insurers, like Wysh, provide flexible life insurance options where you can adjust your coverage amount. So if you don’t need your policy to cover a home right now but you may in the future, having a policy that can adjust to that potential need is valuable.

5. Extendable coverage

‍Because term life insurance can be more flexible and convenient than other types of life insurance, you may be able to extend your policy, should you want to do so. What do we mean? Well, if you purchased a 10-year policy, but feel you may need protection for longer, you can choose to renew for another term. You can take your policy at your pace. Some insurers even let you switch from a term life to a permanent life insurance policy. It’s important to speak with your insurer about your options. Education is key.

Should you get flexible term life insurance coverage?

We can’t just give you the answer here. Mostly because it all comes down to your needs and what you want from your insurance policy. Generally term life insurance has great coverage for low costs. And because it’s not permanent, you can try it out for a term and see if it’s the right type of insurance for you. No pressure, really. Some insurers, like Wysh, are 100% digital, so you’re able to apply at your own pace. Apply from the comfort of your toilet seat, if you like. Or couch, whatever works for you.

It really all comes down to your needs and what you want from your policy. Generally, term life insurance has great coverage for low costs. Also, because it’s not permanent, you can try it out for a time (or a term) and see if it’s the right type of insurance for you. No pressure, really.

At Wysh, we offer first-rate, online life insurance with a top-tier customer service team. Applying can take the amount of time it takes to make two cups of coffee in the morning and there’s no medical exam required, just answer a few health questions. If you think term life insurance could be a great addition to your financial reality, apply now from the comfort of your toilet and/or couch.