Understanding the Differences Between Our Whole Life, Term Life, and Term 100 Life Insurance
One of the most important investments you can make is in your family’s financial security. Life insurance is one financial tool that can help. With various types of life insurance available, it can be overwhelming to choose the right one. Understanding the differences between Whole, Term, and Term 100 Life Insurance can help you choose the best option for your situation. Learn how these policies can work together to provide more coverage.
Term Life Insurance
Term Life Insurance offers protection and a set premium for a specific period of either 10, 20, or 30 years. This policy is ideal for individuals seeking coverage during their working years or for a specific financial obligation, such as a mortgage or children's education. It also provides a death benefit to your beneficiaries if you pass away within the policy term. The premiums for Term Life Insurance are generally lower compared to other options. However, it does not accumulate cash value and after the term is up, the premiums will increase.
Term 100 Life Insurance
As the name suggests, Term 100 Life Insurance provides coverage until age 100. The premium for this policy is based on your age at the time of purchase and remains level for either 30 years or until age 85, whichever comes first.
After this initial period, premiums may increase, decrease, or remain the same. Still, they will never exceed the guaranteed maximum premium stated in the policy. Term 100 Life Insurance offers long-term protection and is an attractive option for individuals who want to help ensure their loved ones are financially secure.
Whole Life Insurance
Whole Life Insurance is designed to provide coverage for your entire lifetime. Similar to Term plans, premiums are based on your age at the time of purchase. They remain level throughout the policy's duration, which can extend up to age 121.
One significant advantage of Whole Life Insurance is that it accumulates cash value over time. Cash value can be used for a wide range of purposes, including paying premiums, taking out loans, or even supplementing retirement income. Whole Life Insurance offers a combination of lifelong protection and a cash value accumulation component. This can make it an attractive option for those seeking long-term financial security.
Stacking Life Insurance Policies
Did you know you can stack these policies for enhanced coverage and benefits? Stacking refers to combining multiple life insurance policies to increase the death benefit and cash value. For example, you could have a Term Life Insurance policy to cover your mortgage and a Whole Life Insurance policy for lifelong protection and cash value accumulation.
Essentially, stacking allows you to tailor your coverage to meet your specific needs at different stages of life. As you progress through your career, you may require higher coverage to help protect your family's financial well-being. Stacking policies allows you to increase your coverage over time.
When you choose the right life insurance policy, you help ensure your loved ones are financially secure in the event of your passing. Understanding the differences between Whole, Term, and Term 100 Life Insurance is key to making an informed decision.
- Term Life Insurance provides temporary coverage.
- Term 100 Life Insurance offers protection until age 100.
- Whole Life Insurance provides coverage for life and cash value accumulation.
By stacking policies, you can customize your coverage and adapt it to fit what works best for your family throughout your life. Consult with a qualified insurance professional to determine the best combination of policies that align with your financial goals and priorities.
This blog is up to date as of March 2025 and has not been updated for changes in the law, administration or current events.
