Cost Comparison – Term Life and Whole Life Insurance

When deciding whether term life insurance or a whole life policy, also known as guaranteed universal life (GUL) is the right choice for you, one of the first places to look is to do a cost comparison of life insurance policies.

Cost Comparison

Term life insurance provides life insurance coverage for a defined period of time – the term. It is less expensive and has no cash value. If you live to the end of your term, your family won’t receive a payout. Term life insurance is the most affordable kind of life insurance coverage but it does not build any cash value. 

Whole life insurance premiums are more expensive. Your coverage lasts a lifetime. It combines a savings portion with the death benefit so you are guaranteed a payout as long as you keep paying the premiums. Whole life insurance may generate a cash value that grows over the life of your policy. If that’s important to you, whole life insurance may be worth considering for you. 

Below is an annual price comparison (as of April 2019) for term life and guaranteed universal life insurance. This chart showcases the averages of three lowest annual SelectQuote premiums for GUL and 30 and 20 year terms.

No one but you can decide if term life insurance or whole life insurance is the right choice for you. Life insurance is one of your most important financial decisions. But your licensed SelectQuote agent is here to help you weigh your options. A knowledgeable agent is skilled in understanding the different life insurance policy options, will help you decide what kind of coverage you need and provide cost comparisons. SelectQuote shops multiple highly rated and respected insurance companies to find you the best coverage at the best price. Contact us today for your free quote.

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