Life Insurance 101 — Making Sense of Term and Whole Life
By Ashley River Benefits Group · Updated 2026
Life insurance is one of the simplest and most powerful financial tools available — yet it’s also one of the most misunderstood. Many people wonder whether they need term life, whole life, or something else entirely. The right coverage depends on your goals, your stage of life, and your budget.
Understanding the Basics
Life insurance provides financial protection to your loved ones if you pass away. The proceeds — called the death benefit — can help cover living expenses, debts, final costs, or future goals.
Two Primary Types of Life Insurance
- Term life insurance provides coverage for a specific period (10–30 years). It’s usually more affordable but ends when the term expires.
- Whole life insurance is designed to last a lifetime and may build guaranteed cash value over time.
Quick Check: What’s the key difference between term and whole life?
Why Choose Term Life?
Term life is often chosen for its simplicity and affordability. It’s a great way to cover large obligations — like a mortgage or income replacement — for a set time when responsibilities are highest.
- Lower premiums for higher coverage amounts
- Ideal for families, new homeowners, and income earners
- Coverage expires after the chosen term unless renewed or converted
Scenario: Who might benefit most from a term life policy?
Why Choose Whole Life?
Whole life coverage lasts as long as premiums are paid. It can build a cash-value component that grows at a guaranteed rate and can be accessed in certain situations. Many people use it for lifelong protection or estate planning.
- Permanent coverage with potential cash value accumulation
- Premiums stay consistent over time
- May be used for legacy or final-expense planning
Question: What’s a unique feature of whole life insurance?
Cost Over Time
Coverage cost depends largely on age and health. The chart below illustrates how estimated term-life premiums generally rise with age.
*Illustrative only. Actual rates vary by carrier, health, and coverage amount.
Ready to Talk Through Your Options?
Life insurance is personal — and easier to understand with a real conversation. Let’s discuss what makes sense for your goals, your family, and your future.
Schedule a ConsultationAshley River Benefits Group operates as a marketing name affiliated with Lloyd Agencies LLC, a licensed insurance agency. Insurance products are offered through Lloyd Agencies LLC and its appointed carriers. This page provides general educational information only and is a solicitation for insurance.
