Differences Between Whole & Term Life Insurance

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Whole and term life insurance policies have a few very important differences that you're going to need to know. Learn the differences between whole and term life insurance policies with help from a financial industry expert in this free video clip.

Part of the Video Series: Life Insurance Lessons
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Video Transcript

Hi, my name is Phil Cioppa, and I'm the host of the nationally syndicated radio program, "The Phil Cioppa Show," and today the question has been posed what is the difference between a whole life policy and a term insurance policy. I liken it to buying or renting a house. A whole life policy is something that's going to continue to build value because the money you put into it, part of that money is going to go to pay your insurance premium but the other part of the money is going to be subject to interest in possible dividends so that it's almost like a savings account. You're building it up and you're saving that money and it's money that can be used before death down the road. At the same time, we have term insurance. Term insurance is just that, you have a period of time whether it be 10, 15, 20, 25 or 30 years, there is no cash buildup, you're paying for what you get and at the end of the term there is no money there for you. You've paid into it, you're going to get more insurance down the road. But, both insurances have their place and it's only in speaking with an insurance professional and ascertaining your needs that you can know exactly what is the best policy for you. Thank you very much.

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