Whole Life vs. Term Life Insurance – Which is Better?
Are you confused between opting for term life or whole life insurance? Is choosing the right policy for your life insurance a daunting task?
Well, you’re not alone. Life insurance will be one of the most profound decisions you ever make and it’s important to ensure that it is worth all your lifelong efforts.
Hence, to make the choice easy and simple for you, we have explained the two in detail.
Whole Life Insurance
Whole life insurance offers you financial security and protection for life. It is naturally more expensive because you end up paying plenty of premiums during your life. So there is an element of cash value, which you won’t have to pay in term insurance.
Your insurer will deposit all the premiums in cash value so you have an advantage of running money when you need it. Plus, getting a full-time life insurance gives you financial, emotional, and familial stability.
Term Life Insurance
Term life insurance, as the name goes, is only prescribed for a set period of time. It could be 20 years, 10 years, or even until your children grow up and move out of the house. It is much, much simpler and quite similar to how car insurance works.
By paying off premiums monthly or yearly, term life insurance gives you coverage of short-term debts, loss of income, and other small-scale liabilities. However, in term life insurance when the said person dies, the policy only pays back the face amount. The beneficiary doesn’t get life protection or long-term financial coverage.
What Do You Really Need?
In the end, it will always come down to this question. The policy you choose will depend on your future plans about family, children, business expansion, etc. While whole life insurance is expensive and requires you to pay hefty premiums, it may always be a wise choice if you’re the only earner in the home.
However, if you think that short-term insurance is more suitable and sufficient for both you and your family, then why not. Nonetheless, if you’re a young person who is new to life insurance, just simply opt for the basic policy.
You can always expand your policy later.
Leave us a message if you have any questions concerning life insurance.