As its name suggests, term life cover refers to a specific period such as 10, 20, or 30 years during which you generally pay a fixed premium. If you die during this time, it will pay a benefit. Another feature of term life cover is that its cash value doesn’t grow. For these reasons, term life cover is generally more affordable than whole of life cover.
If you have whole of life cover, you are covered for your entire life as long as you keep paying premiums. As whole of life policies include an investment or savings element, their cash value can grow. This amount would also be paid to your loved ones if you died.
Choosing either term life or whole of life cover is an important decision. So before making it, you should review your current financial situation, plus your financial plans for the future with an Ask Acorn financial advisor.