Term life: simple protection
You pick a term (10, 20, 30 years) and a death benefit. Premiums stay level for the term and are cheap — a healthy 35-year-old can get $500k of 20-year term for well under $30/month. If you outlive the term, coverage ends.
Whole life: permanent + cash value
Coverage lasts your entire life and builds cash value on a tax-deferred basis. Premiums are 8-12x more than term. Best used for estate planning, business succession, or leaving a guaranteed inheritance — not as a primary savings vehicle.
How much coverage do you need?
A common starting point is 10-12x your annual income, plus outstanding debts (mortgage, student loans), future obligations (kids' college), and final expenses. Subtract existing savings and employer-provided coverage.
Underwriting and health class
Insurers rate you Preferred Plus, Preferred, Standard Plus, Standard, or Substandard based on age, health, family history, tobacco use, and hobbies. Getting quotes from an independent broker who shops multiple carriers matters more than the brand on the policy.
Riders worth considering
Waiver of premium (skips payments if disabled), accelerated death benefit (early payout for terminal illness), and child riders are inexpensive add-ons that can meaningfully expand what your policy does.
Have questions on this topic?
Talk with Peter Witte directly. We answer every inquiry personally.
Contact us