
Whole life policies are meant to cover a person for their entire life, hence the name “whole life.” They also usually include investment. Whole policies’ premiums typically increase as a policyholder ages, but so can the investments in them. Eventually, the earnings from the investments can grow to cover the premiums, essentially paying for the policy later in life.
Term life policies last for a set term. There are term policies that will last for 10, 15, 20, 25 or 30 years, and some have even different term lengths. Once a term policy’s coverage period is over, it no longer will provide death benefits. Because term policies don’t last as long, their premiums tend to be much lower than whole life policies’.
Most term life policies don’t have retirement plans or investment vehicles. They only provide death benefits.

What Can Policies’ Benefits Be Used For?
Life policies’ death benefits can be used for many things. People often use them to:
- Compensate for a decrease in family income upon the policyholder’s passing
- Pay medical bills associated with the policyholder’s end-of-life care
- Pay off any outstanding debts the policyholder has
- Cover funeral expenses for the policyholder
- Help with other financial needs that beneficiaries have
Is a Whole or Term Life Policy Better for New Jersey Residents?
Whole life and term life policies both provide death benefits and may seem to serve the same purpose. They’re really designed to meet different needs, though, and which one is better for a New Jersey resident will depend on the individual’s needs.

A whole life policy can be a good choice if someone wants to save for retirement through their insurance policy, rather than another investment vehicle. Whether or not an insurance policy’s investment tools are the best tools available to a person depends on their job situation, age, and many other factors that affect what investment options they do and don’t have.
A whole life policy may also be the better choice for anyone who financially provides for a disabled, handicapped, or chronically ill loved one. Because whole life policies last for the policyholder's enter lifetime, providers can be sure their loved one will be financially provided for upon their death -- regardless of when they pass away.

A term life policy may be appropriate for someone who wants to ensure that their loved ones will be financially cared for if they pass away during a certain amount of time. Often, parents will consider this type of policy. If they pass away while the policy is in effect, their partner and children will be able to use the policy’s death benefits to help with their living expenses. Once the policy’s term is over, their children will hopefully be self-sufficient, and they’ll hopefully have a nest egg. Thus, if they pass away after the policy’s term has ended, their loved ones will have other financial resources to draw on.
How Can New Jersey Residents Get Life Insurance?
For help comparing whole and term life policies, New Jersey residents can contact an independent insurance agent who is licensed in the state. There are agents all over the state who are knowledgeable about the different life insurance solutions that are available to protect you.