Several factors influence which insurance policy—term life or whole life—best fits your needs. Understanding where you are in life and where you may be in the future will make your decision easier, as will a conversation with an SBLI life insurance expert.

Whichever policy you chose (in some cases, having both makes sense), the most important thing is to ensure all of your current and future financial obligations will not be left for others.

Term Life Insurance

Benefits

• Premiums are typically lower than those of a whole life policy
• With level premium term, you can lock in the same premium for the entire length of the term for as long as 30 years
• Provides coverage for specific expenses that will eventually disappear
• Policy can be converted to a whole life policy before expiration

Things to Consider...

• Unless you buy level premium term, your annual premiums will increase as you age
• If you still need insurance at the end of your term, getting additional coverage will be more expensive because of your age
• Policy has no cash value

Whole Life Insurance

Benefits

• Policy is guaranteed to remain in force for life, provided premiums are paid
• Premiums won't increase as you age
• Policy has an immediate cash value, and you can borrow from it at any time
• Use policy dividends as cash, or re-invest them into your policy to increase its value
• Ideal for paying final expenses and estate taxes

Things to Consider...

• Higher premium payments
• As your needs change and financial obligations diminish, premium payments may become burdensome
• Any money borrowed from the policy will be deducted from the final death benefit