Term life covers you for a fixed period, 10 to 30 years, at the lowest cost per dollar of coverage, and expires if you outlive it. Whole life costs more but lasts your entire life and builds cash value you can borrow against. Most people buying income replacement choose term; most people planning for final expenses or a permanent need choose whole life.
| Term Life | Whole Life | |
|---|---|---|
| Coverage length | Fixed term, 10-30 years | Lifetime, as long as premiums are paid |
| Cost per $100,000 | Lowest | 3-10x more than term |
| Cash value | None | Builds over time, can borrow against it |
| Rate after the term | Renews at a much higher rate or ends | Fixed for life |
| Best for | Income replacement, mortgage years, raising kids | Final expenses, estate needs, lifelong dependents |
IUL is permanent coverage like whole life, but ties cash-value growth to a market index with a floor that protects your principal. It costs less than traditional whole life for the same permanent coverage in many cases, with more flexibility and more complexity.
Many term policies include a conversion option that lets you convert some or all of the coverage to a permanent policy without new underwriting, usually within a set window of the original term. Guy checks this feature before recommending a carrier.
Whole life guarantees coverage for your entire life and builds cash value, both of which the insurer has to fund through higher premiums starting on day one. Term only has to cover the fixed period you select, with no cash-value component.
It's better understood as permanent insurance with a savings component than as an investment. The guaranteed cash-value growth rate is modest. People who want market-linked growth inside permanent life insurance usually look at indexed universal life instead.
Guy Jean compares real offers across carriers and explains what fits before you decide anything. No pressure, no obligation.
Guy Jean will reach out shortly with your options. Prefer to talk sooner? Book a free call.