Owning versus Renting—Whole Life versus Term

Everyone's life changes over time, so it's important to review your insurance coverage periodically to ensure it continues to meet your needs. Term insurance, like renting a home or an apartment, is designed to be temporary. You purchase a contract for a specific period of time, and the policy will pay a guaranteed death benefit only if the insured dies during this timeframe.

Whole life insurance, on the other hand, is designed to be permanent. Instead of offering only a temporary death benefit, it provides three important permanent benefits to help you build a solid financial future. First, it has a guaranteed level premium that will not increase during the insured’s lifetime, provided the premiums specified in the policy are paid. Second, the policy builds guaranteed cash value and non-guaranteed dividends that accumulate on a tax-deferred basis. As the policyowner, you can access this cash through loans throughout your life, using this money for any purpose you want, including supplementing your retirement. And third, the policy offers a guaranteed death benefit.

With whole life insurance, you own your policy and continue to build equity. With term insurance, you rent a death benefit for a specified period of time. After that period is over, you will most likely have to pay a higher premium to obtain similar coverage. And depending on your age or health, it may be difficult to find another policy to suit your needs.

When you have term insurance with MTL Insurance Company, you can convert your policy to any of our permanent insurance plans for the same face amount, without undergoing another physical examination. You can convert at any time, as long as it is prior to whichever is earliest: age 65, or your issue age plus the length of your level premium period plus five years.* MTL mails you conversion information annually, before each policy anniversary date. So, the next time you receive MTL's conversion offer, or during your annual review with your MTL Insurance Representative, consider the advantages of whole life insurance. Like owning a home, whole life might be a better choice for you and your family’s future.

For more information, contact your MTL Insurance Representative or MTL's Policy Change Division at 800-323-7320, ext. 5070.

*See policy for full details

Form No. 358
Policy Form Nos. 1AG; 1BJ; 1BP; 1CC07 1AP; 1AQ

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