Whole versus Term Life Insurance

Biphoo

11 May 2017

109 Views

Whole versus Term Life Insurance:-

Everybody wishes to have a safe and secured future. Everyone wishes to give their family a sustainability and stability for the forthcoming, but you never know with life what is ahead of you. Sometimes there are certain situations that arrive and leave you helpless and for that day you need to have your security planned beforehand. You need to have yourself insured so that nothing comes between you and your family’s security. There are so many insurance covers that are there to help you combat these kinds of situations. You should be wise enough to choose what is best for you.

There are so many service providers and Life Insurance agents in the market who have been guiding you throughout the process. They have been making sure that they make you understand all the terms and conditions an insurance cover is offering you. This will help you to take your decision wisely. Now there are so many types of insurance covers that exist and we often see people getting confused between term life insurance & whole life insurance. So first of all we need to understand what do they state and offer and then we will get to know which one is better for you.

Term Life Insurance:

As according to its name Term Life Insurance has validity for just a period of time. It has a leverage of offering death benefits to the insurance holder at his death event. But I somehow that person survives and the insurance period is over it holds no benefits then. You cannot even have maturity benefits from it once the insurance term is over. The most important advantage that this insurance type offers is that it comes at a low premium thus attracting and luring a lot people. Even then also the no maturity benefit fact makes people to rethink of it.

Whole Life Insurance:

As the name suggests it is a permanent life insurance that is for the whole of your life. It offers you the befits after the death of the insurance holder along with the income benefits as well. The premium amount for this one is high as compare to the term insurance and it is fixed. Generally it has been observed that the people above the age of 40 years have been opting for this type of insurance as they have the liabilities on them like their spouse, children, house, etc.

Which of them would serve you better?

If you get to choose between each of these life insurance covers than you need to consider different factors like your age, your income, the benefits and the purpose. For someone who is young and wants to get insured should opt for term life insurance and then they can have it converted to permanent one. This way they can save the high cost premiums initially. While for someone who is ageing and has a ot of liabilities and responsibilities should get a whole life insurance cover so that after they are one their family is secured of the financial problems.

Biphoo

11 May 2017

109 Views