When looking at life insurance, many people ask what the difference between term vs. whole life insurance is. The only problem with this question is they are not really asking for an answer, they are asking for someone to tell them what to do.

The only way somebody can determine if term vs. whole life insurance is better for them is by finding out what they want for long-term goals and what they have to spend on life insurance. What it boils down to is finding out what insurance policy is going to work best with the person, not what person works best with the policy.

Whole life insurance is the best policy if the person looking for life insurance has long-term goal oriented plans. Whole life insurance will fit into the long-term goals of somebody rather than the short term goals. It is going to cost a little bit more, but it will also benefit the person in the long run when they hit retirement. Whole life also has cheaper plans, but if they are going to get whole life, they will probably pay a little more than any term insurance plan available.

If the person is not looking for a long-term goal and just wants to get a short term fix for life insurance, than term would be perfect. Term life insurance can be purchased from 10-15 years and the premium is much cheaper than a whole life insurance policy. The only problem is that once the policy runs out the premium gets much more expensive and harder to pay. So, this is only a temporary fix and is a good choice, if somebody is only looking for a short term life insurance policy. So, is term insurance better than whole life insurance? It basically depends on what the person wants.

From a financial viewpoint, the whole life insurance is the better option because is the one that will come out in the end better. The payments will be the same as they are when the insurance coverage starts and there will be no sharp increases as the insured person gets older. From a cheap standpoint, term is better at first because the premium is much cheaper and does not cost as much out of pocket expenses.

What many financial advisors that sell life insurance are now doing is selling term insurance for 30 years to people that want a little lower payment. When the 30 years is up, they are taking the payout, because a payout can be taken at the end of 30 years, and turning it into a whole life policy. While some advisors are doing this, they are trying to steer people away from it because many people will take the payout and then spend the money instead of converting it into a whole life policy. Talking with a financial advisor and going over goals and budget is the best way to determine whether term vs. whole life insurance is the best option.