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Term Life vs. Whole Life Insurance

What kind of life insurance policy do I need?: dad on the playground with his kids

Life insurance can be divided into two basic categories: term life insurance and whole life insurance. Each type offers unique advantages. It is important to understand the differences between term life and whole life insurance when planning for your family's future.

Term life insurance provides coverage for a specific period of time, known as a “term.” Policies may offer a term of 10, 20 or 30 years. Many people buy term insurance to get more protection at a lower cost (generally term is less expensive than whole life, since coverage is limited to a specific period of time).  At the end of the term, the policy may or may not be renewable for a limited amount of time, or convertible to a whole life policy if desired.

"It is important to understand the difference between term life and whole life insurance when planning for your family’s future."

In comparison to term, Whole life insurance provides coverage for the entire life of the insured, as long as premiums are paid. It also builds cash value over time, (term policies do not). In the future, you can borrow against the cash value of the policy should there be a need.* Additionally, if you ever decided to cancel your policy you would receive the cash value that has accumulated.

The Gerber Life Term Life Policy offers::

  • Terms of 10, 20 or 30 years.
  • Premium rate is guaranteed to stay the same during the life of the policy.
  • Possibility to renew the policy annually at the end of the term.
  •  Opportunity to convert to a whole life policy.

The Gerber Life Whole Life Policy offers::

  • Coverage for your entire life, as long as premiums are paid.
  • Premium rate and coverage amount (the death benefit) that are guaranteed to stay the same during the life of the policy.
  • Cash value that grows over time, and that could be borrowed against.*

    * Policy loan interest rate is 8%.

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