What is a key advantage of term life insurance over whole life insurance?

A key advantage of term life insurance is its lower upfront cost compared to whole life insurance. Term life insurance typically offers a higher coverage amount for a lower premium because it provides coverage for a specific period, such as 10, 20, or 30 years, without the additional features that come with whole life policies, such as cash value accumulation or lifetime coverage.

Policyholders choose term life insurance when they need affordable coverage that fits within their budget, especially during significant financial responsibilities, like raising children or paying off a mortgage. This cost-efficiency allows individuals to secure substantial protection without the financial burden that often accompanies whole life insurance policies.

Whole life insurance, on the other hand, is designed for lifelong coverage and includes an investment component that builds cash value over time. As a result, the premiums tend to be much higher. Thus, the advantage of lower upfront costs with term life makes it an attractive option for many individuals seeking financial protection without the commitment of higher lifetime premiums.