• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

A Moment With Franca

A Family, Lifestyle & Travel Blog

  • Home
  • About
    • About Me
    • Contact
    • Privacy Policy
  • Family
    • Family Events
    • Family Life
    • Family Days Out
    • Birthdays
  • Lifestyle
    • Home & Interiors
    • Bathrooms
    • Bedrooms
    • Garden
    • Kitchen
    • Health
  • Travel
    • Days Out
    • Things To Do In London
    • Holidays
    • Press Trips
  • Reviews
    • Toys & Games
    • Days Out
    • Fashion
    • Beauty
  • Seasonal
    • Christmas
    • Halloween
    • Mother’s Day
    • Father’s Day
    • Easter
    • Valentine’s Day
  • Giveaways
  • Show Search
Hide Search

Understanding the Differences Between Whole Life Insurance and Term Life Insurance Policies

amomentwithfranca · 23 July 2021 · 11 Comments

Life insurance can be confusing, but it’s a must-have for all parents. If you are considering buying life insurance, you are taking a step in the right direction to protect your family. Life insurance can be a safety net for your loved ones if you unexpectedly pass away. Although it’s heartbreaking to think about, it’s incredibly beneficial to plan for whatever the future may hold. There are various insurance companies and policies to choose from, so it can become confusing very quickly.

mother, father, and child looking at a computer

Take a look at the two main categories of life insurance and the main differences. Understanding the differences between whole and term life insurance policies can be crucial to making the correct choice for your family.

The Main Differences Between Whole Life Insurance and Term Life Insurance Policies

Defining Term Life Insurance Policies

father and son standing on a soccer fieldImage courtesy of Pexels

Term life insurance policies are a type of life insurance that only lasts for a certain amount of time. You can purchase a plan for anywhere between 1-30 years. Once the policy expires, you no longer have coverage. This type of life insurance is the easiest to understand because it is straightforward, and there are no added benefits, unlike whole life insurance. Because there are no added benefits, term life insurance policies are much more affordable.

With term life insurance, the policy is temporary. Once the plan expires and if the policyholder is still alive, there are a few options available. The policyholder can decide to purchase another term life insurance policy, switch over to a permanent policy, or choose not to buy any more life insurance. If you happen to pass away during the time of your policy, your beneficiaries will receive the payout. As the policyholder, you can determine who you want your money to go to and how you would like it to be used.

Defining Whole Life Insurance Policies

Young family with adorable infant child painting together on floor

As mentioned above, whole life insurance policies can become a little more confusing than term life insurance. This is because whole life insurance is a type of hybrid policy that adds investment to your life insurance. Whole life insurance stays in place for your entire life, meaning you never have to worry about losing your coverage.

There is also an added cash value to whole life insurance policies. This cash value can be used to invest, or the policyholder can use it while still alive. Every month, a particular portion of the premium will go into the cash value side of your premium. Over time, your cash value will grow, and you can use it for things like retirement, taking out a loan, or fund the policy’s premium. With this added cash value, whole life insurance policies are much more expensive than term life insurance policies. A whole life insurance plan can be as much as 15 times the cost of the term policies.

Understanding Which Policy is Right for You

Life insurance concept with leaflets and magnifying glass in monochrome

An essential part of any life insurance policy is knowing that you are protecting your family. Take a look at the benefits of term life insurance and whole life insurance to have a side-by-side comparison.

Term life insurance benefits

  • Much cheaper than whole life insurance
  • Match the insurance coverage to your needs
  • Convertable to a permanent policy

Whole life insurance benefits

  • Lifetime coverage
  • Build equity
  • Estate planning for your heirs
  • You may receive dividends

Speaking With a Professional

A team of three young professionals work closely on mutual project in office.

If you were to research all of the information about life insurance, you would never have enough time in the day. This is precisely why life insurance agents are here to assist you in finding the most suitable plan for your needs and your family. Because the agents do this for a living, they will be able to offer you in-depth information about carriers and their plans. An independent insurance agent is an agent that is not tied to a specific company and will give you an unbiased opinion about your coverage. They are not attached to a company, which means that they can offer you various plans from different carriers, which is completely free to you. The insurance companies pay agents, so you don’t have to pay a penny to receive their professional advice.

Searching for a whole life insurance or term life insurance policy can be a daunting and stressful task. With Fabric, you can be at ease knowing you are putting your family’s needs first. Quote life insurance policies, write your will and organize your family’s finances all in one place. Learn more and get started today to ensure that your family is safe from any tragic accident.

Do you have life insurance? 

*Disclosure: Collaborative Post

Thanks for stopping by,

Love you all ❤️

Franca  💋

Linking up with:

Related

Filed Under: Finance / Money, Collaborative Posts, Family

Reader Interactions

Comments

  1. Margaret Gallagher says

    24 July 2021 at

    Didnt actually realise the difference – thanks for the information

    Reply
  2. Helen Arlow says

    29 July 2021 at

    It can be very confusing, knowing which policy is best. Thank you for making it a little easier to understand x

    Reply
  3. Olivia W says

    4 August 2021 at

    This has been super helpful! I dont have life insurance currently, but looking to start researching more into it

    Reply
  4. Georgie Wright says

    5 August 2021 at

    Useful information thanks

    Reply
  5. Jeanette Leighton says

    5 August 2021 at

    I know I should have but I haven’t got any life insurance currently

    Reply
  6. Kirsty Fox says

    5 August 2021 at

    Lots of great information, thanks.

    Reply
  7. AJ says

    5 August 2021 at

    This is very useful. Thanks for putting this guide together!

    Reply
  8. Helen Copson says

    7 August 2021 at

    Insurances are SO confusing! Thanks for the explanation #KCACOLS

    Reply
  9. Lydia+C.+Lee says

    8 August 2021 at

    We do. More just for peace of mind. But the older we get, the more $$ it gets so there’s a point where I guess it’s not worth it. #KCACOLS

    Reply
  10. Katrina | ChatterFoxBlog says

    12 August 2021 at

    Insurance is so confusing and not really something people talk about. Thanks for such an informative post.

    Katrina x
    #KCACOLS

    Reply
  11. Sam says

    13 August 2021 at

    Really informative post x #kcacols

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

HI THERE, I’M FRANCA!

Hi, I'm Franca, a lawyer mum of 2 gorgeous girls married to my best friend, living in London. Award nominated parenting & lifestyle blogger. Read More…

Christmas Offer

Pines and Needles Discount Offer

Family Days Out

  • The Best Light Trails In London 2022
  • The London Transport Museum During Christmas
  • Monopoly Lifesized Review

Collaborative Videos

Popular Videos





AWARDS

BritMums



BritMums

Tots100

Tutora Best Parent Insight Blog Award Shortlist

RANKING

Tots100
Top 20 UK Parent Blog 2020

Flea Network Top 20 UK Parent Blog 2018

MEMBER

LINKY

Keep Calm and Carry On Linking Sunday
✨Happy Friday✨.Did you have a good week? Unf ✨Happy Friday✨.Did you have a good week? Unfortunately, it wasn’t that good for us because the girls have been under the weather. Bella started first with a sore throat and high fever for a few days and then when Bella got better, Sienna started! She got a horrible cough but no temperature. Her cough was that bad that she couldn’t sleep very well for a couple of nights. They are both much better now and back to school.. The weather hasn’t helped either. It has been so cold lately! I literally feel frozen all the time. Thankfully it is looking better atm as the temperatures are starting to rise. I decided to get my flu vaccine, so I hope it protects me from all these viruses that are going around! Have you had the flu vaccine too? .On another note, I went yesterday to a parents meeting about GCSE options for Bella. I can’t believe she needs to think about it already ahead of Year 9. The time really goes fast. Are your kids dealing with GCSEs too?.📸 Sharing this beautiful bouquet of flowers from @freddiesflowers to brighten up our day.#flowerarrangement #flowerdelivery #bouquetofflowers #flowersmakemehappy #loveflowers #flowersoftheday #flowersoftheweek #flowerlover #freshflowers #flowerobsession #bunchofflowers #foreverflowers #flowersofinstagram #homesweethome
Ad✨FUL London✨.I love going to the hairdress Ad✨FUL London✨.I love going to the hairdresser. It is one of my favourite things to do. There is nothing like the feeling you get when everything is done and your hair looks fantastic! I was so excited when @livetruelondon invited me again to visit one of their salons in London to try out a new treatment using their new hair care brand @ful_london Swipe left to see the final look ☺️.On the blog there is my review of this new hair treatment that has transformed my hair! Check the link in my bio ☺️.Do you invest in hair products? Do you like hair masks? .#livetruelondon #haircareproduct #haircareproducts #haircaretips #colouredhair #hairtreatment #blondehair #hairmask #balayagehair #over40 #over40blogger #overforty #overfortystyle #over40andfabulous #over40mom
✨Cadbury World✨.During the holidays we went ✨Cadbury World✨.During the holidays we went to @cadburyworlduk in Birmingham. The in-laws live close to the city so we decided to visit..I was surprised with the amount of activities they offer. I thought it was just a quick visit to the factory but how wrong I was. See below all the activities included with the price 👇🏻🍫 Aztec Jungle🍫 The Cadbury Story🍫 Journey to Europe🍫 4D Chocolate Adventure 🍫 Manufacturing 🍫 Gill Cocks Collection🍫 Making chocolate story🍫 Cadabra car ride🍫 Bull Street🍫 The Bournville Experience🍫 Chocolate Making🍫 Advertising Avenue🍫 Purple Planet🍫 Have a go discovering different chocolate making techniques and doodle your name with chocolate🍫 Cadbury World Chop with amazing prices🍫 Cadbury World Cafe🍫 African Adventure Play area (outside)🍫 Green Screen (you pay extra for photos)🍫 Character Meeting.You don’t have to do all the activities. You can go at your own pace and skip the activities you don’t fancy doing. Useful Information:📍 Cadbury World, 69 Linden Rd, Bournville, Birmingham B30 1JR💰 £18.95 Adults (16+), £13.95 Child (3-15), £59.85 Family of 4 (max 2 adults), Free for Under 3. 🍫 You get free chocolate! ⏰ THE MAIN ATTRACTION LASTS 1.5 - 2 HOURS. On average, visitors spend around 3-4 hours visiting Cadbury World. ℹ️ AGE RECOMMENDATION suitable for all ages.As you can see, there was plenty to do which entertained us for hours! The Cadabra car ride was cool! Watch the video until the end to see the activities we did ☺️.It was such a fun day out. We definitely recommend you to visit if you are in the area. And…..who doesn’t want some free chocolate, right? 🍫We sure did! 😂😋🙌🏻.Have you visited Cadbury World before?.#cadburyworldbirmingham #cadburyworld #cadbury #cadburydairymilk #cadburychocolate #chocolate #chocolatefactory #familydaysout #familydayout #familyfuntime #familyfunday #ukattractions #thingstodoinbirmingham #thingstodowithkids #familytime💕
Ad PR Invite✨Matilda The Musical✨.I was so e Ad PR Invite✨Matilda The Musical✨.I was so excited to take Sienna to watch @matildathemusical at Cambridge Theatre in Covent Garden thanks to @londontheatre (swipe left until the end to see a short video of the stage beautifully decorated) 🎭.I have already seen this musical twice with Bella but it was finally the time to take Sienna now she is older. She is the No 1 fan of Matilda. She knows all the songs and dances so she was over the moon to watch it in person. Apparently, she would love one day to be in that stage too! Bless her! 🥰.Even though I have seen it before, each time has brought a different experience for me as they change/rotate the cast often so it feels like a new show watching a new Matilda each time. This is the type of show that you wouldn’t mind watch it many times! 😀.Useful Information:📍Cambridge Theatre, Earlham St, London WC2H 9HU (near Tube is Covent Garden)💰 From £20.00 – No fees⏰ RUNNING TIME 2 hours, 35 minutes (including 20 min interval)ℹ️ AGE RECOMMENDATION 6+.It is such a fantastic show. This cast is amazing! We were so impressed! We can definitely recommend you to go and watch it too! Check @londontheatre for fabulous deals for this show and many others. .Have you seen Matilda?.#MatildatheMusical #londontheatre #theatrelife #westend #musicaltheatre #theatrekid #whatsonstage #8yearsold #thingstodoinlondon #londonwithkids #whatsonlondon #timeoutlondon #letsdolondon #musicaltheatrelife #theatreforkids
✨Twist Museum✨.Nick took Sienna to @twist_mu ✨Twist Museum✨.Nick took Sienna to @twist_museum during the holidays and they had such a fun time!.Twist is an immersive, interactive museum. The exhibits are illusions that challenge your senses. You will learn about how you experience colour, perspective, shape, sound, heat and more. It is a surreal experience. .See below some details:📍 248 Oxford St, Oxford Circus, London, W1C 1DH🎟️ Adult ticket £23.50 | Aged 17 and under £18.50 | £74 Family ticket (up to 2 adults and 2 children | Children 3 and under go free🕰️ Monday to Thursday 11.00am - 8.00pm | Friday & Saturday 11.00am - 9.00pm (last entry 8.00pm) | Sunday 10.00am - 7.30pm.They enjoyed the experience so definitely recommend to visit if you are in Central London and want to try something different.Do you like inmersive activities?.#twistmuseum #londonmuseum #artmuseums #artgallerylondon #funactivities #artinstallation #mysecretlondon #londonist #museumofillusions #immersiveexperiences #immersiveart #thingstodoinlondon #artandtechnology #artandculture #illusionart
Ad PR Invite✨Bubble Waffle✨.We visited @hans Ad PR Invite✨Bubble Waffle✨.We visited @hansandgretel.uk store inside @hamleys on the 1st floor @westfieldlondon for the best dessert experience ever! 😀.All their desserts look amazing! Very pretty and of course instagramable! 😉 They have yummy ice creams, sweets, waffles, chimney cakes, etc 🍭🍦🍬.We tried their bubble waffle with ice cream which was out of this world! 😋 Watch the video until the end to see it! .If you have a sweet tooth like us, then this is the place for you! 🙌🏻.Have you tried bubble waffles before?.PS: Happy New Year! Hope we all have a wonderful 2023! 🎉 #hansandgretel #bubblewaffle #bubblewaffles #desserttime #dessertlover #dessertgram #dessertoftheday #dessertlondon #londonfoodie #londonfood #londoneats #eatlondon #dessertsofinstagram #icecreamlover #thingstodoinlondon
Load More… Follow on Instagram
Copyright © 2023 · A Moment With Franca · Privacy Policy

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

A Moment With Franca
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.