What is the difference between term and whole life insurance?

Term life insurance provides coverage for a defined period—10, 20, or 30 years. If you die during the term, your beneficiaries receive the death benefit. If you outlive the term, coverage ends and no benefit is paid. Term is straightforward and offers the most coverage per premium dollar, making it popular for income replacement and mortgage protection.

Whole life insurance is permanent coverage that remains in force for your entire lifetime as long as premiums are paid. It includes a guaranteed cash value component that grows on a tax-deferred basis at a guaranteed minimum rate. Whole life premiums are significantly higher than term premiums for the same death benefit, but they are fixed for life and never increase.

Term is appropriate when you need maximum coverage for a specific period at minimal cost. Whole life suits those who want lifelong coverage, tax-advantaged savings, and estate planning flexibility. Many Nevada families use a combination—term for large, temporary obligations and permanent for long-term legacy goals.