Why might someone choose term life insurance over whole life insurance?

Choosing term life insurance over whole life insurance is often driven by the cost-effectiveness and targeted purpose of term policies. Term life insurance provides coverage for a specified period, such as 10, 20, or 30 years, making it a suitable option for individuals who want to secure financial protection for specific responsibilities, like raising children, paying off a mortgage, or ensuring financial stability for dependents during critical years.

The primary advantage is affordability; term life insurance generally has lower premiums compared to whole life insurance. This lower cost allows policyholders to purchase a higher coverage amount without straining their budgets, particularly beneficial for those on a tighter financial plan.

Term life is tailored to meet set needs for a limited timeframe, which aligns well with temporary financial obligations. Once those responsibilities have diminished or been fulfilled—like children becoming financially independent or mortgages being paid off—some individuals may no longer require life insurance, making term life a practical choice. This contrasts with whole life insurance, which is designed to last a lifetime and includes a cash value component, often leading to significantly higher premium costs.