Difference Between Term & Whole Life Insurance

Discover the difference between term vs whole life insurance. Matrix Direct can help.

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What is Whole Life Insurance?

Many people wonder what the difference is between term & whole life insurance. It can help to compare term & whole life insurance to determine which type of life insurance is best for your particular situation.

Whole life insurance is a type of permanent life insurance coverage that provides a guaranteed death benefit along with guaranteed* cash values. Part of each premium payment is applied to the policy's cash value account, which grows on a tax-deferred basis (based on current federal tax laws).

Whole Life Insurance

  1. Premiums are set at a certain amount and don't change.
  2. Premiums are partially determined based on the age of the insured. The younger the insured is, the less expensive the annual premium.
  3. There are guaranteed cash values or dividends that are dependant on the specific terms of the policy.
  4. The insured can borrow against cash values.
  5. Current federal income tax law allows for deferred tax advantages for some insurance policies.
  6. Whole Life Insurance provides coverage for the entirety of the insured's life, generally to age 100, as long as the policy is in force.

If you need more information about the difference between term & whole life insurance or still need clarification about how to compare term & whole life insurance or which type you should pick, call Matrix Direct. At Matrix Direct, we are an insurance service company that represents established and highly-rated insurance companies. Our licensed life insurance professionals listen to you, and then recommend appropriate life insurance coverage choices for you. For example, we can help explain the difference between term & whole life insurance.

*Guarantees are subject to the claims-paying ability of the issuing insurance company.

Reviews from Customers who Bought Insurance through Matrix Direct

We think what our satisfied customers say about us in their life insurance reviews, says more than any advertising campaign ever could. A life insurance rating from customers is a great way to see what people really think about a company. The reviews you see below are from customers who purchased life insurance policies through AIG Direct. After a customer buys life insurance from us we ask them for a review. We post all reviews unless their content is obscene, inflammatory or not factually accurate. We ask customers to rate our services and then produce an overall rating as shown below. We encourage you to read our life insurance reviews and see just how happy our customers are. Endorsements/Testimonials present should not be construed as a recommendation to purchase or an indication of the value of any product or service. The speaker of the Endorsement/Testimonial is not affiliated with the Company nor monetary consideration was provided.

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