• 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
    • Theatre & Shows
    • Days Out
    • Toys & Games
    • Fashion
    • Hair & 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…

Newsletter

    Built with ConvertKit

    Amazon

    What’s On

    • Barbie Movie Review: Girl Power or Feminist Flop?
    • Wicked Musical London Review
    • 42nd Street at Sadlers Wells Theatre London: A Review

    Family Days Out

    • Qbix Gamecube Review at All Star Lanes White City
    • Frameless London: Unforgettable Immersive Art Experience in Marble Arch
    • tastecard: Your Handy Guide to Exploring and Saving in London

    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
    ✨Our Second Week In Torrevieja✨. Our extende ✨Our Second Week In Torrevieja✨. Our extended stay in Torrevieja turned out to be the best decision. After Sienna’s stitches were removed, we fully embraced the beaches, pool, and all the wonders this town had to offer. 🌞.Swipe left to see a photo dumb of our second week. We really enjoyed every minute of it. We also changed accommodation for our second week. Stay tuned for more details about this new accommodation in the next post. 🏠.We had such a great time that we are definitely coming back!☀️🏖️.Have you ever stumbled upon a destination that exceeded all your expectations? 😄🌴.#Torrevieja #FamilyTimeIsTheBestTime #FamilyTime💕 #PinkSunset #QualityTimeWithFamily.....Costa Blanca | Torrevieja | Torrevieja Holiday | Family Travel | Holiday Memories | Spain | Alicante | Travel Blogger | Family-friendly Holidays | Mediterranean Coastline | Spanish Coastal Towns | Family Bonding |
    ✨Home Away From Home✨ .Our first week in Tor ✨Home Away From Home✨ .Our first week in Torrevieja (Spain) was amazing, well apart from Sienna’s cut, thanks to this stunning penthouse at Valentino Golf! .Views of the pool, BBQ dinners on the terrace/rooftop, and killer sunsets—what more could we ask for? Super clean, mega comfy, and just a short hop from Villamartin. We even had breathtaking views of the Pink Lake of Torrevieja. We enjoyed the pools every day, and after our journey from London, this apartment felt like home. 🏠☀️.Watch the reel until the end to step inside our home away from home in Spain 🌅✨ .What’s your favourite memory from your last holiday?.#HolidayRental #PoolView ....Torrevieja Accommodation | Holiday Accommodation | Vacation Rental Spain | Penthouse Stay | Valentino Golf Torrevieja | Villanartin | Holiday Home Views | Costa Blanca | Torrevieja | Family Travel | Pool Relaxation | Holiday Memories | Spain | Alicante | Travel Blogger | View From Terrace
    ✨First Week in Torrevieja✨ ☀️🏖️.Our ✨First Week in Torrevieja✨ ☀️🏖️.Our first week in Torrevieja was a mix of unexpected moments and relaxation. Sienna’s 9th birthday took an unexpected turn when she cut her thumb, and we spent some time in the ER getting a single stitch. 😢 But she’s a trooper and handled it like a champ..Despite this, we still managed at the start of that first week to soak up some sun, enjoy the pool, watch beautiful sunsets, and take in the incredible views. Evenings by the pool became our thing, creating lasting memories and a sense of calm. It wasn’t the week we had planned, but it turned out to be a week of quality family time and unwinding. ☀️🏖️.Swipe left to see our first week in pictures, and if you keep checking until the last photo, you can see Sienna’s stitch. She was such a brave soul. 💪.Now, who else has had unexpected adventures during their travels? .#Torrevieja #BeachView....Costa Blanca | Torrevieja | Family Ttravel | Sunsets | Pool Relaxation | Holiday Memories | Family Bonding | Spain | Alicante | Travel Blogger |
    ✨Beach Days in Costa Blanca✨.We explored som ✨Beach Days in Costa Blanca✨.We explored some beautiful beaches during our time in Costa Blanca, Spain. From Cala Cerrada to Playa del Mojon, from Playa de Mil Palmeras to Playa de la Mata, each had its own charm. .But our favourite was Playa de la Mata. It had a warm, clear sea, and those gentle waves were just perfect. We found ourselves coming back here again and again, enjoying the simple joys of sun, sea, and sand. We even stayed till 8:30 pm one day, savouring every moment of sunlight. .There are of course more beaches waiting to be explored, but that will have to wait for another trip! 😄🌴.Check the reel until the end to see each of the beaches I mentioned above 🏖️.✨Like, Save & Share if you are planning to visit Costa Blanca or if someone you know would like to visit ✨.If you have been around this area, what other beaches would you recommend to visit?☀️.#CostaBlanca #BeachDays ....Costa Blanca | Costa Blanca Beaches | Spain | Alicante | Family Travel | Travel Guide | Travel Blogger | Playa Cala Cerrada | Playa del Mojon | Playa de Mil Palmeras | Playa de la Mata | Beach Holiday | Beach Inspiration
    ✨The Pink Lake of Torrevieja✨.During our sum ✨The Pink Lake of Torrevieja✨.During our summer road trip, we stumbled upon this beautiful natural wonder, Las Salinas de Torrevieja in Alicante, Spain! Torrevieja was our next stop for about 2 weeks!💖🏞️.We’d heard about its pink waters, but seeing it in person was incredible. The early morning sunlight painted the lake even pinker which was stunning! 🌅.Ever wondered why it turns pink? 👇It’s all thanks to the unique Halobacterium bacteria and Dunaliella Salina micro-algae that thrive in its super-salty waters. .Who would have thought you could find a Pink Lake like this in Spain? 🇪🇸.Have you ever come across a natural wonder like this that took your breath away? 🌟#PinkLakeTorrevieja #PinkLake #Torrevieja #Alicante....Pink Lake Torrevieja | Las Salinas de Torrevieja | Torrevieja Spain | Pink Lake Spain | Alicante | Costa Blanca | Spain | Lago Rosa | Family Travel | Travel Guide | Travel Blogger | Things To Do In Torrevieja
    ✨Wrapping up our Barcelona adventure✨ .We’ ✨Wrapping up our Barcelona adventure✨ .We’ve loved exploring this vibrant city during the summer and sharing it here with you! Hope you found our tips helpful if Barcelona’s in your travel plans. 🇪🇸.Next stop: Torrevieja! ☀️ Get ready for content of two weeks of sun, sea, and summer vibes! Hopefully will bring you a warm escape as the chill of autumn sets in! 🏝️🌊. What’s your favourite destination to escape the autumn chill?.#VisitBarcelona.....Barcelona | Barcelona Skyline | Barcelona Landmarks | Spain | Exploring Barcelona | Barcelona Diaries | Travel Guide | Travel Blogger | Cityscape | Barcelona Tourist Attractions | Family Travel | Mirador del Santuari Barcelona
    Load More… Follow on Instagram
    Copyright © 2023 · A Moment With Franca · Privacy Policy