Term vs. Whole Life Insurance: What’s the Real Difference?

April 10, 2025•2 min read

Imagine this. You’re sitting at your kitchen table with a cup of coffee, staring at a stack of life insurance brochures. You're trying to make sense of term life insurance versus whole life insurance, but it feels like deciphering a foreign language. Sound familiar?

At OnePoint Insurance Agency, we meet people every day who face this exact dilemma—and we’re here to break it down in a way that actually makes sense.

Meet Sarah and James: Two Paths to Protection

Sarah, a 32-year-old single mom, wanted affordable protection while raising her two kids. She didn’t need lifetime coverage—just enough to make sure her children would be financially stable if anything happened to her. She chose a term life insurance policy that covered her for 20 years, just long enough to see her kids through college.

James, on the other hand, was thinking about long-term legacy planning. He wanted something that would not only cover his family when he passed, but also build cash value he could borrow from during retirement. For him, whole life insurance was the clear choice.

What Is Term Life Insurance?

Term life insurance offers coverage for a set period—usually 10, 20, or 30 years. If the insured passes away during that term, their beneficiaries receive the death benefit.

Why People Choose Term Life:

✅ It’s more affordable, especially for younger families
✅ Great for temporary needs like mortgage protection or income replacement
✅ Simple and straightforward coverage

It’s like renting an apartment—it serves a purpose during a certain phase of life.

What Is Whole Life Insurance?

Whole life insurance provides lifelong coverage and builds cash value over time. It’s often used as a tool for long-term financial planning, wealth building, and leaving a legacy.

Why People Choose Whole Life:

💡 Guaranteed coverage as long as premiums are paid
💰 Builds tax-deferred cash value
🏛️ Useful for estate planning or supplementing retirement income

Think of it like owning a home—there’s equity and long-term value in the investment.

Which One Is Right for You?

Ask yourself:

Are you looking for low-cost, temporary coverage? Term might be best.
Want a lifetime solution with cash value? Whole life could be your fit.
Still not sure? That’s why we’re here.

At OnePoint Insurance Agency, we believe insurance should be personalized, not one-size-fits-all. We’ll walk with you to find the best solution—no jargon, no pressure.