The Gerber Life Parenting Blog

The Pros and Cons of Term Life and Whole Life Insurance

April 10, 2014

Mother Giving Children Piggyback RideAs a parent or grandparent, choosing the right kind of insurance for your family’s needs is an important part of preparing for the future. There’s a feeling of security in knowing that you have enough coverage to provide your beneficiaries with adequate benefits.

Two common kinds of life insurance – term life and whole life – have advantages and disadvantages. Read on to gain insight into how each kind works.

Term Life Insurance

Term life insurance is especially popular among working parents who want to secure benefits at affordable prices, as your children and family are most dependent on your income during your working years. Term life insurance enables you to purchase enough coverage to pay for possible lost wages until your children graduate college and become independent. Depending on your age and the age of your children, you may decide to lock in a low premium for a term between 10 and 30 years. Term life insurance coverage amounts can be adjusted for each new term, as needs change.

Term life insurance is not permanent. Once your term expires, you would have to purchase a new policy – usually at a much higher premium. You may also find that you are ineligible for term life insurance renewal if you have developed high risk health problems.

Whole Life Insurance

Whole life insurance can be a permanent solution for life. Once you have a whole life policy, you never need to worry about your coverage expiring or your rates going up. Instead, you can have a lifetime of coverage and a set premium, regardless of your age or future health, during the life of the policy. Also, whole life policies gain cash value, which can be borrowed against,* should a need arise, as long as premiums are paid. In addition, you can turn in your policy later on, for the cash value available.

Whole life insurance policies can have higher premiums and lower benefit amounts than term life policies, and they don’t let you modify your coverage amount as your needs change. Many people who choose a whole life policy supplement it with a term life policy while they have dependents to support.

Both term life insurance and whole life insurance offer great benefits that can help protect you and your family’s future. Visit Gerber Life’s website to learn about our Whole Life Insurance1 and Term Life Insurance2.


1 Policy Form Series SWLP-13, Policy Form ICC13-SWLP
  Policy Form ICC13-HWLP, Policy Form Series HWLP-13
2 Policy Form Series SLT-05
  Policy Form ICC11-LTL, Policy Form Series LTL-11

*Policy loan interest rate is 8%

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