Term vs. Whole Life Insurance: Key Differences (2026)
Term vs whole life insurance in plain English: how term, whole, universal and variable life work, plus cash value, policy loans, conversion and free look.
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Life insurance replaces income and pays debts if someone who depends on you dies. These guides compare term and permanent policies in plain language, show a needs-based way to choose an amount, and explain how to check an agent and a policy before you buy.
Term vs whole life insurance in plain English: how term, whole, universal and variable life work, plus cash value, policy loans, conversion and free look.
How much life insurance do I need? Estimate it with income replacement, the DIME method and a needs worksheet, minus Social Security and group coverage.
Term life covers you for a set period, such as 20 or 30 years, and pays only if you die in that time. Whole life lasts for your lifetime and builds cash value, which is why it costs much more for the same death benefit.
Enough to cover the income, debts and future costs your family would face without you, minus savings and other coverage. Our needs-based worksheet walks through the calculation step by step.
Often not on its own. Group life coverage is usually a multiple of salary and may end when you leave the job, so many families add an individual policy.
Use your state insurance department's license lookup to confirm the agent and company are licensed in your state. The NAIC's directory links to every state department.
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