Term Life Insurance Vs Whole Life Insurance - Which is the Best Policy?
Term and whole life insurance might sound like they are the same thing, but they are actually different.
Many people are not too clear on their differences.
Term Life Insurance It is bought for a specific time frame or a term.
Usually, people will try to buy this insurance for about ten to thirty years of time.
Most of time, they are trying to seek protection over the years which they would be working, or during the time when they have the need to support their children.
They might have a tendency to think that after their policy expires, they have saved enough money to cover the rest of their lives to replace the need for a insurance.
Occasionally, insurance companies might offer whole life insurance at a lower face value to cover the final expenses of a person after the term of the policy ends.
Normally, when this happens, the insured person would have reached the age which is considered to be old and might have health difficulties which will cause the premiums to be higher for a lower death benefit.
Whole Life Insurance This policy will provide coverage for the person insured for lifetime as long as the policy still in effect.
To keep the insurance in effect, the person just has to pay premiums.
Some of the policies can be paid of over a period of time, i.
e.
the person can choose to pay all the premiums of the insurance over a one or two decades and they can rest assure that they are covered by a insurance notwithstanding how long they may live.
Besides, it is able to build cash value too; therefore, they act as a savings method besides insurance.
Cashing in or borrowing against the value of the policy is allowable and can be counted as an asset for the person.
It is not easy to say which a better policy to take up is.
To me, there is no winner between term and whole life insurance so the best thing to do is to combine both of them.
To provide the build of insurance coverage during the years which you will be working, choose a term life insurance policy which is smaller then your estimated needs.
Next, choose a whole life insurance policy with lower face value for coverage over your whole life time.
Many people are not too clear on their differences.
Term Life Insurance It is bought for a specific time frame or a term.
Usually, people will try to buy this insurance for about ten to thirty years of time.
Most of time, they are trying to seek protection over the years which they would be working, or during the time when they have the need to support their children.
They might have a tendency to think that after their policy expires, they have saved enough money to cover the rest of their lives to replace the need for a insurance.
Occasionally, insurance companies might offer whole life insurance at a lower face value to cover the final expenses of a person after the term of the policy ends.
Normally, when this happens, the insured person would have reached the age which is considered to be old and might have health difficulties which will cause the premiums to be higher for a lower death benefit.
Whole Life Insurance This policy will provide coverage for the person insured for lifetime as long as the policy still in effect.
To keep the insurance in effect, the person just has to pay premiums.
Some of the policies can be paid of over a period of time, i.
e.
the person can choose to pay all the premiums of the insurance over a one or two decades and they can rest assure that they are covered by a insurance notwithstanding how long they may live.
Besides, it is able to build cash value too; therefore, they act as a savings method besides insurance.
Cashing in or borrowing against the value of the policy is allowable and can be counted as an asset for the person.
It is not easy to say which a better policy to take up is.
To me, there is no winner between term and whole life insurance so the best thing to do is to combine both of them.
To provide the build of insurance coverage during the years which you will be working, choose a term life insurance policy which is smaller then your estimated needs.
Next, choose a whole life insurance policy with lower face value for coverage over your whole life time.
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