Whole or Term Life Insurance

Whole life or term insurance?

Anyone buying life insurance has a few basic decisions to make. The first involves whole life vs. term life insurance. Term life insures you for a specific number of years, or a term, and is generally less costly. Whole life, on the other hand, is permanent insurance you keep for your entire life and tends to cost more. A whole life insurance policy builds a cash value that you can save for retirement or other purposes, while term life strictly insurance against loss of life. There are many variations on whole and term life policies, as well as other kinds of insurance such as universal and variable life insurance. The best thing to do when you're trying to decide on a policy is to consult a financial professional.

John Hancock Life Insurance Company: providing insurance products since 1862

Whether you're considering a life insurance policy or wanting to build a whole financial strategy for your life and career goals, a John Hancock financial professional can help. Backed by the long-term strength and stability of John Hancock, our representatives can provide you with access to quality life products - including whole life and term life - and innovative investment products as well. Your John Hancock professional will provide independent analysis of your financial goals and help you develop financial strategies to fulfill them. From term life or whole life to mutual funds¹ and annuities, your John Hancock representative has access to the financial products that can help you both protect your family and build wealth.

A comparison of benefits - whole life and term life insurance

Whole life is insurance that lasts a life time. It provides permanent protection for your family. The premiums follow a specified schedule and the value of your policy grows on a tax-deferred basis. Whole life insurance lets you simultaneously protect your family and build wealth toward paying for college or retirement or passing on wealth to your survivors after your death. Riders, or enhancements to your whole life policy, can address specific needs and add additional protection to your basic policy.

Term life insurance covers you against loss of life for a specific term, usually one to 20 years. Unlike whole life, it does not accrue any cash value, so the premiums are less expensive, making term life a desirable insurance product for those with less financial flexibility. Your term policy can also be enhanced with riders to customize it for your specific needs. And should your financial position change and you're able to pay a higher premium, you can convert the term policy to permanent coverage - a whole life or universal life policy - that builds value throughout your life.

For more information on term life and whole life insurance from John Hancock Life Insurance Company, click here.

¹A fund's investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. Please read the prospectus carefully before investing or sending money. For a prospectus and more information please click here.