Choosing something as important as life insurance can seem like a very daunting task, especially when there are so many options out there to choose from. Finding the best option for you is dependent on what you need out of it.  From term to whole, we’re breaking down all of the things you need to consider when choosing a life insurance policy.


The Types

There is a wide array of life insurance policies out there including term, permanent, whole, universal, indexed, variable, variable universal, simplified issue, guaranteed issue, final expense, and group life insurance. Most of these options fall under the umbrella of the two main types: term life and whole life.



Term or “pure” life insurance is when you pay a premium and that money goes directly to the beneficiary in the event of a death. The money you are paying into the insurance solely pays for the death benefit, which can be paid out as a lump sum, monthly payment, or an annuity. A term life insurance policy typically lasts from 10 to 30 years and at the end, the payments are forfeited in the event of no death. This policy typically has a much cheaper monthly premium, making it a popular choice.



Much like term life insurance, whole life insurance is paid by a monthly premium and in the event of death, the beneficiary can receive the money at face value.  Unlike term life insurance, whole life insurance offers a cash value that you can borrow against and lasts the entirety of the holder’s life; there is no expiration date. Whole life insurance is typically more expensive than term with extra fees added on, which results in you paying much more into the policy than the face value your beneficiary will receive at the end.


Things to consider:

What do you want out of it?

Ultimately you have to decide what the most important things are to you. Ask yourself, “what am I looking for from this policy?” If your top priority is low payments and you only need it pre-retirement, then a term life insurance is the choice for you. If you want something that will cost more but cover the entirety of your life and have a component of cash value, then a whole life insurance policy is right for you.


How Much Are You Willing to Pay?

A big deciding factor in what insurance policy you should choose will come down to how much you are willing to pay. To break down an example,  Dave Ramsey stated that a life insurance policy of $125,000 will cost around $7 a month for term life insurance or $100 a month for whole.


Both life insurance types are good options and will provide the coverage needed for your loved ones in the event of death. It all comes down to what feels right to you. Talk to your insurance agent and go over the different policies with an open mind to determine what is the right choice for you.



At Loretto, we’re here to help you and your loved ones, whether it’s navigating how to afford assisted living, or determining which type of care services will serve you best, we’re here for you. With 19 specialized programs and facilities and 2,500 hundred dedicated caregivers, we are dedicated to providing quality care to the Central New York Community. We proudly serve over 10,000 individuals annually with a system of care that addresses the unique needs of every individual. Looking for more information on care for you and your loved one? Visit our Choosing Your Care page, or feel free to contact us!




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