Whole Life
A whole life insurance policy is a kind of permanent life insurance, which means it will last for the lifetime of the holder and, as well as providing a payout on the death of the insured, there is an accumulation of cash. If you have whole life insurance, you can access or invest this savings component during your lifetime.
Term Life
This kind of life insurance expires after a specified number of years. As the policyholder, you can decide how long the policy will last. Usually, this is ten, 20, or 30 years. At the end of the term, you can renew the policy for another term or convert it into permanent life insurance. Alternatively, you can end the contract.
Unlike a whole life insurance policy, term life policies have no cash value. They only offer a payout on the death of the policyholder.
Indexed Life
With this insurance, you can earn a return on the cash value of the life insurance. The cash value will either be fixed or at an equity-indexed rate of return.
Two of the advantages of this type of policy are flexibility, and the offer of gains tax-free. On the downside, you can expect a cap on the return, and you won't know how much you will earn.
