Is Term or Whole Life Insurance Better for Seniors?

Is Term or Whole Life Insurance Better for Seniors?

If you’re a senior that is considering life insurance, you have a few options to choose from. It’s important to compare your options so you get the best policy for your needs. You don’t want to simply choose the cheapest or most convenient life insurance available. There is a lot that goes into selecting a life insurance policy. Without thoughtful consideration, you could end up with the wrong policy in hand.

Keep in mind that life insurance is very personal and is unique to your situation. There is no one-size-fits-all solution, so it’s a good idea to take your time shopping around before settling on an option. Once you have done your research and know the differences between the products, you can make an informed decision. You shouldn’t get yourself into a life insurance policy without fully understanding it.

Two of the most popular options you will find are term and whole life insurance. There is a big ongoing debate between the two and which is best for seniors. Lets dive into the differences between term and whole life policies. 

The Term Life vs Whole Life Debate

There’s an ongoing debate between term and whole life insurance advocates. Some people lean one way or the other, depending on what they know about term and whole life insurance. In reality, these aren’t the only options available. There are many different types of life insurance available and they are all worth considering.

The real debate is between term life insurance and permanent life insurance. One type of permanent life insurance is whole life insurance, but there are other permanent products available.

Term life insurance is a type of life insurance that lasts for a temporary amount of time. Permanent life insurance is insurance that essentially does not end until you pass away. Whole life insurance is a permanent type of policy that lasts until you pass away but has other aspects outside of being pure life insurance coverage. Another type of permanent life insurance, guaranteed universal life, lasts up to a certain age, like 90, or 121. This is often deemed a permanent policy because either you or your needs for life insurance would be gone by then. 

This debate can make choosing a type of life insurance confusing. Depending on what you hear, you might be confused about which one you should choose. It’s important to do your own research about all of the different options. This will help you to know what to expect from each type of life insurance.

What is Term Life

Term life insurance is insurance that lasts for a specific duration of time. This may be 10, 15, or 20 years. There are other term lengths available as well. Most people who get term life insurance choose a term that makes sense for their life and their situation. For example, someone who has young children at home may get a 20-year term so their family can be protected until the kids are grown up.

Term life insurance is one of the most affordable and most basic types of life insurance available. This is why it’s so popular and is one type of life insurance that many people consider. It’s definitely worth considering no matter what stage of life you may be at.

Term Life Pros and Cons

It’s a good idea to take a look at the pros and cons of term life insurance so you can make an informed decision.


–       Term life insurance is simple and easy to understand. This means that you won’t have to worry about any hidden fees. The terms are straightforward so you know exactly what to expect.

–       Term life insurance is the most affordable type of life insurance. Other types of life insurance, especially permanent types, can be very expensive. Term life insurance is more affordable because it only lasts for a portion of your life.

–       If you cancel a term life insurance policy before it expires, you will not lose any value. There is no cash value component so you cannot lose anything outside of premiums paid.

–       Term life insurance is renewable up to the age of 70. As a senior, this may not apply to you, depending on how old you are when your policy expires. It is a nice option to have if you get term life insurance early on.


–       Your coverage only lasts as long as the term does. You will need to find another policy once your term policy expires. This can be inconvenient for some people. The purpose of this is to give you coverage only for the duration of time that you need it.

–       There is no cash value or savings component with term life insurance. You cannot build cash value or use your life insurance policy as a savings option. For some people, this is very important.

–       Your premiums will increase as you age. This is due to the risk of the company having to pay out the death benefit. As you age, you are more likely to pass away, which would mean that the company needs to pay out the death benefit.

What is Whole Life

Whole life insurance is another popular type of life insurance. It is often offered as an alternative to term life insurance. Whole life insurance lasts for the individual’s whole life. One downside to whole life insurance is that it is 6-10 times more expensive than term life insurance.

Whole life insurance offers a cash value component. This is a savings complement to the policy that accumulates interest. Term life insurance does not offer a cash value component. If you want to find a policy that allows you to build cash value, whole life insurance may be the right answer for you. Be sure to look into the specific terms of the cash value within the life insurance policy.

Whole Life Pros and Cons

Every type of life insurance has its own pros and cons. It’s important to be aware of these pros and cons so you can make an informed decision about your life insurance.


–       You get coverage for your entire life so you never have to be without life insurance. This can give you peace of mind about your family and how they will be protected. The policy doesn’t run out after a set amount of time. The death benefit will be paid out no matter when the insured passes away.

–       The cash value that you accumulate can be used as loans. If the situation arises, you can borrow against your policy. This can give you some additional protection in case you need it.

–       Your premiums will remain the same. With some types of life insurance, your premiums can fluctuate over time, with whole life insurance, you will pay the same premiums for the duration of your policy.


–       Whole life insurance is very expensive. This is especially true when it is compared to other life insurance options. This makes whole life insurance less accessible to some people.

–       If you want to use whole life insurance to build wealth, there are other alternatives to do so. Whole life insurance is not the best way to build wealth and there are other options that are more effective.

–       Whole life insurance is more complicated than other types of life insurance. Term life insurance is an option that is easy to understand. If you choose whole life insurance, you may not fully understand the terms of your policy.

–       Some financial advisors suggest keeping your life insurance and your investments separate. This is because there can be better ways for you to grow your money. Whole life insurance may not be the best way for you to grow your money.

Best Whole Life Alternative

Whole life insurance is not right for everyone. There are many reasons that people begin to explore other options. The best alternative to whole life insurance is guaranteed universal life insurance. This type of life insurance is active up until a certain age, which you get to choose.

Guaranteed universal life insurance is a type of life insurance that is very easy to understand. It is not too complicated so you shouldn’t be confused about what the policies offer. In most cases, the terms and conditions are easy to understand.

One reason that you might consider an alternative to whole life insurance is due to the lack of flexibility whole life insurance offers. Whole life insurance does not give you nearly as much flexibility as other options do.

Guaranteed universal life insurance is much more affordable than whole life insurance is. This is one of the reasons that people try to find alternatives to whole life insurance.

Why GUL is a Good Alternative to Whole Life 

Guaranteed universal is better than other types of life insurance for some people. This is true for a few reasons. One of those is its affordability. It’s more affordable than whole life insurance. This can make it more accessible to those who cannot afford the high premiums of whole life insurance. Plus, the money you save can be put to good use in whatever way you would like to use it.

The purpose of guaranteed universal life insurance is to offer pure protection. Even if the cash value reaches zero, you will be protected. A guaranteed universal life policy will offer you and your family the protection you need. Knowing you are protected can give you peace of mind about the policy. You will know that your family is provided for when you pass away.

With guaranteed universal life insurance, the rates are fixed until you reach the age that you select. You don’t have to worry about the policy’s premiums changing over time. You will know what you can expect to pay each month for the duration of the policy.

Overall, guaranteed universal life insurance is very simple to understand. This can save you the trouble of trying to decipher confusing policies and terms. It’s much easier to understand guaranteed universal life insurance compared to other life insurance policies. This can be very beneficial, especially if you are not familiar with life insurance. 

Who Term Life Is for

Term life insurance is a great choice for anyone who is looking for affordable life insurance coverage. As mentioned, term life insurance is the most affordable type of life insurance. It is still a good way to get the coverage you want and need. The lower cost does not mean that term life insurance is not as good as other types of life insurance. It simply offers a duration for coverage and gives you just what you need during that time.

You should consider term life insurance if you have temporary financial responsibilities. Many people get a term policy for the duration of their mortgage. Another reason that people get term life insurance is if they still have children who depend on them at home. They can get a 20-year term policy to last until their kids move out. These temporary financial responsibilities are good reasons to get temporary life insurance.

Who Whole Life is for

Whole life insurance is for anyone who is interested in having that extra saving component to their life insurance. Not all life insurance policies offer savings components like whole life does. It’s a nice feature to have so you can save up cash alongside your life insurance policy. This is a good option if you want to keep your investments and your insurance in the same place.

It’s worth noting that this is not the best option for seniors. Seniors will not have enough time to accumulate cash value. It’s better to get whole life insurance early on if the savings component is important to you. If you’re a senior, there are other more effective ways to build up that cash value. Plus, you are going to pay more for whole life insurance premiums over time. By choosing a different life insurance policy, you can save some money and do with it as you please.

Who Guaranteed Universal Life Insurance Is For

Not everyone should get a guaranteed universal life insurance policy. With so many different policies available, there is something for everyone. In many cases, a term life insurance policy can work well.

Still, there are a couple of people who should consider getting a guaranteed universal life insurance policy. This includes:

–       Those looking to leave a legacy. If you are wanting to leave a legacy, using guaranteed universal life insurance is one of the best ways to do this. You might be interested in leaving a legacy to your spouse and children. By having a guaranteed universal life insurance policy, you will be able to follow through with that plan.

–       Those with permanent financial responsibilities. Some people have permanent financial responsibilities. This can be the case if you are caring for a loved one long-term. You might have other expenses that are going to last permanently. A guaranteed universal life insurance policy is a great way to get protection when it comes to paying for those permanent financial responsibilities.

If you are not getting life insurance for one of these two reasons, you can choose a different life insurance policy. Term life insurance works well for most people and it will still give you the protection you need. There is a reason that term life insurance is the most popular option available. It is the most straightforward option and gives you the benefits that you need.

Work With a Pro

When you are looking for life insurance, it’s a good idea to work with a professional. You should look for an independent insurance agent who can help you to make a decision for your needs. An independent life insurance agent does not work for any single company. They can show you all of your options and offer guidance. You don’t have to worry about an independent agent being biased toward a specific company. They will show you everything available without pushing you one way or another.

You can also find independent agents who specialize in helping seniors find life insurance. This is a great option because they know exactly how to help you based on the needs of seniors. You can trust their expertise and the experience they have built up from working with other seniors. It’s important to work with a professional who has plenty of experience working in life insurance.

You may not have the expertise to get a life insurance policy on your own, and that okay.  Many individuals do not know exactly how to get life insurance. Life insurance is not something that you get more than a couple of times. It’s important to do it correctly. Having guidance can be a big help. It’s something that you should avoid messing up. That’s where a trustworthy and experienced pro can help.

Start Here

The good news for you is we are experts at getting life insurance over 50 years of age. We do a thorough needs analysis and then shop around with all of the companies out there to get you the best product at the best price. The best, this doesn’t cost you a dime! Give us a call today or use the quoter on this page to compare rates online.