The short answer
This guide answers the most common questions about term life through an independent agent.
Term vs whole life insurance is the classic life insurance question. Term covers a set number of years at a lower price. Whole life lasts for life and builds cash value, at a higher price.
This guide lays out the differences and shows how to decide, including the common choice of using both.
Part of our complete guide: Term Life Insurance: The Complete Guide.
Quick answer
Term: lower cost, set length, no cash value. Whole life: lifelong coverage and cash value, higher cost. Convertible term keeps the door open to permanent coverage later.
MarketView Agency is an independent insurance agency (National Producer Number 18345705).
On this page
- Term life through an independent agent: should you buy term or whole life?
- Why compare with an independent agent
- Where to buy term life insurance: what sets your term life rate
- Term life insurance quote: what is a term life ladder?
- A worked example
- Difference between term and whole life: can you change term into whole life?
- Who term life insurance is for
- Frequently asked questions
Term life through an independent agent: should you buy term or whole life?
| Feature | Term life | Whole life |
|---|---|---|
| How long it lasts | A set term, like 20 years | Your whole life, if premiums are paid |
| Cash value | None | Builds over time |
| Cost for the same amount | Lower | Higher |
| Best for | Needs with an end date | Lifelong needs and planning |
Many families buy term for big, temporary needs, such as the mortgage and raising children, and a smaller whole life policy for lasting goals like final costs or leaving a legacy.
Why compare with an independent agent
We are an independent agency, which means we are not tied to one insurer. We compare plans from several carriers and help you pick the one that fits.
- More choices. Several carriers, not one.
- Help with health history. Some carriers view certain conditions more favorably than others.
- No added cost. Premiums are set by the carrier, not the agent.
- No pressure. If a policy is not a fit, we will say so.
Compare rates from several carriers in about two minutes. Free, no obligation.
Where to buy term life insurance: what sets your term life rate
- Age at purchase. The younger you are, the lower the rate for the whole term.
- Health and history. Conditions, medications and family history affect your rate class.
- Tobacco and nicotine. Usually one of the biggest price factors.
- Coverage amount. More coverage costs more, though the cost per thousand often drops at higher amounts.
- Riders. Optional add-ons raise the premium.
Because insurers weigh these factors differently, comparing several carriers is the simplest way to find a fair price.
Term life insurance quote: what is a term life ladder?
Laddering means buying two or more term policies with different lengths instead of one large policy. For example, a 30-year policy for the mortgage and a 20-year policy for raising children.
Your total coverage is highest when your family needs it most, then steps down as debts shrink and children grow up. That can cost less over time than one big policy for the longest term.
Tip: Laddering works best when each policy has a clear job. Write down what each one is for.
A worked example
Say you're 34 with a $150,000 mortgage balance and 16 years left, $19,000 in other debts, and an income of $55,000. Here's one simple way to size coverage:
| Item | Amount |
|---|---|
| Mortgage balance | $150,000 |
| Other debts | $19,000 |
| 4 years of income | $220,000 |
| Total to consider | $389,000 |
In this example, a 20-year term would outlast the loan (it ends around age 54). Your own numbers will differ; use this as a starting point and adjust for savings, other coverage and future costs like school.
How to get covered in 3 steps
- Check your rate. Pick your state and answer a few quick questions about the coverage you want.
- Compare carriers. A licensed agent compares term life insurance options from several insurers and explains the trade-offs.
- Apply and get covered. Many applications take one phone call. Coverage starts once the policy is issued and the first premium is paid.
Difference between term and whole life: can you change term into whole life?
Most term policies can be converted to a permanent policy for some or all of the amount, without a medical exam, within a set window. This protects you if your health changes.
- Check when the conversion window closes, often at a certain age or policy year.
- Check which permanent products are available for conversion.
- Expect a higher premium for permanent coverage, based on your age at conversion.
Who term life insurance is for
Often a good fit
- you have a need with an end date and want the most coverage for the money.
- you want to cover a mortgage, income or debts.
Maybe not the right fit
- you want coverage that never expires.
- you want a policy that builds cash value.