Term for Young Families
Parents who want their income replaced until the kids are grown and through school. A 20 or 30 year term often lines up with those years.
Term and Whole Life Insurance in San Antonio
Term life covers a set number of years. Whole life covers you for life and builds cash value. We help you choose one, or both, and compare quotes from more than one insurance company.
Who Each One Fits
Term for a Mortgage or Loan
Homeowners and borrowers who want coverage that lasts as long as the debt. A term at least as long as the years left on the loan is a common starting point.
Whole Life for Lasting Needs
People who want coverage that stays in place for life, for final expenses, an estate plan or a family member who will need care for years.
Both, Side by Side
Many families pair a larger term policy for the working years with a smaller whole life policy that stays in place after the term ends.
Term and Whole Life Compared
Term Life
Pays a death benefit if you die during the term you choose, commonly 10, 20 or 30 years. Level term keeps the premium and death benefit the same for the whole term. If the term ends while you are living, the coverage ends.
Whole Life
Covers you for your whole life as long as premiums are paid. The premium is set when the policy is issued and stays level, and part of each payment builds cash value inside the policy.
What You Pay
For the same death benefit at the same age, term premiums usually start lower than whole life. Keeping term after its level period ends can cost much more, because the price is then based on your older age.
Cash Value
Whole life builds cash value you can borrow against or take by surrendering the policy. Loans you do not pay back reduce the death benefit, and surrendering ends the coverage. Term has no cash value.
Conversion Options
Many term policies include a conversion option that lets you change to a permanent policy, such as whole life, within the time limits the policy sets. Check the conversion deadline and which policies qualify when you compare quotes.
Riders
Options you can add, depending on the insurance company: an accelerated death benefit that pays part of the benefit early after a terminal illness diagnosis, a waiver of premium if you become disabled, a child rider, and on whole life, a paid up additions rider.
How Approval Works
Term and whole life both go through underwriting. The insurance company reviews your application and, with your permission, checks records such as prescription history, motor vehicle records and MIB, a database of information from earlier life insurance applications. Depending on your age, the coverage amount and those records, it can also ask for a phone interview, medical records or a paramedical exam.
Some term and whole life policies can be issued without a medical exam. Approval depends on your health and your answers on the application, and the insurance company can still ask for an exam, a phone interview or medical records.
Accurate answers matter. Texas law makes a life insurance policy incontestable once it has been in force for two years during the insured's lifetime, except for nonpayment of premium. Answer every question fully and correctly, including medications and past treatment.
As an independent agency, we can request quotes from more than one insurance company. Our San Antonio office can help you apply online or by phone.
Common Questions
What Is the Difference Between Term and Whole Life Insurance?
Term life covers a set number of years and has no cash value. Whole life covers you for life, keeps a level premium and builds cash value. For the same death benefit, term premiums usually start lower.
How Long of a Term Do I Need?
Match the term to the need. Many families choose a term that runs until the youngest child is grown or the mortgage is paid off, commonly 20 or 30 years.
Can I Change a Term Policy to Whole Life Later?
Often, yes. Many term policies include a conversion option that lets you change to a permanent policy within the time limits the policy sets. The new premium is based on your age when you convert.
Do I Need a Medical Exam for Term or Whole Life?
Some policies can be issued without a medical exam. Approval depends on your health and your answers on the application, and some applications need an exam, a phone interview or medical records.
Can I Have Both Term and Whole Life?
Yes. Many people carry a larger term policy for the years their family depends on their income and a smaller whole life policy for needs that last, such as final expenses.
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