Whole Life vs. Term Insurance: What’s Right For You?

A quick guide from American Trauma Insurance.

Whether you’re a broker, employer, or anyone trying to to make an informed decision, understanding the differences between whole life insurance and term life insurance is key to choosing the right coverage for your future.

Here’s a simple side-by-side comparison of the life insurance products offered by American Trauma Insurance:

	Whole Life Insurance	Term Life Insurance
Coverage length	Lifelong coverage—your beneficiaries are guaranteed to receive the full death benefit, no matter when you pass.	A specific time period (like 10, 20, or 30 years). Some policies allow you to renew or convert to permanent coverage.
Premiums	Fixed and guaranteed not to increase.	Typically level during the term, but premiums may rise if you renew or purchase a new term policy later, due to factors like your age and health.
Cash value component	A portion of your premiums builds cash value over time, automatically, which you can access tax-free.	Not included
Extra benefits	Can be used as a strategic tool for wealth transfer, covering estate taxes and providing an inheritance.	Policies are typically issued within days—no exams, blood work, or medical records required.

In other words…

Choose Whole Life Insurance if you want:

• Lifelong coverage that won’t expire

• A savings account that grows over time

• An estate planning tool

• Peace of mind knowing your premiums will never go up 

Choose Term Life Insurance if you want:

• Affordable coverage during key life stages

• Fast, hassle-free approval (no exams or blood work)

• Coverage you can potentially convert later 

Still unsure? Want to request a quote?

Get in touch. A knowledgeable ATI representative will walk you through our options, and help you decide what’s right for your goals, budget, and lifestyle. We’re here when you need us.