General insurance Term Life And Whole Life Insurance

[maxkalz]

Which type of policy is best for you, term or whole life? The answer depends on several factors, including:

Your Needs. If you need coverage only until your children graduate from college, for example, you might be better off with a term life policy.

Cash-value insurance is better suited for long term needs, such as planning estate taxes and providing lifetime security for your spouse. Some term policies cannot be renewed past age 70 or 80 and can become costly to renew as you approach that age.

The Cost. If term life insurance is more suited to your budget and you want life time coverage, consider a term life policy which can be converted into a whole life policy. Then you can convert the policy whenever your cash flow or needs dictate. You can also purchase a combination of term life and whole life insurance and gradually shift into whole life insurance over time.

Your Savings and Investment Goals. Whole life insurance can be a good long term investment vehicle, especially because the cash value has the potential to grow tax-deferred. Should you no longer need the insurance but want some extra cash, you may surrender the policy and collect the accumulated cash value. Be sure to discuss the tax consequences with your tax advisor first.

As an alternative, you could purchase term life insurance and invest what you save on premiums on your own. Compare the returns you can expect, and remember to take taxes into consideration if you plan to select taxable investments.

So, Should I Buy Term Life or Whole Life Insurance? Term life and whole life insurance both have advantages including immediate family protection. Deciding which type of policy and which features are right for you takes careful consideration and, most times, a comprehensible look at your financial plan. To discuss your life insurance needs and financial requirements, contact your financial professional.

 

[Mika]

Term life insurance means you get coverage for a fixed term, based on your policy; whole life insurance means you get coverage for your entire life. Which insurance type is good for you depends on your priorities. If you are using insurance as an investment strategy and hope to get benefits one day, term life insurance is a better option

 

[Bookwormlux]

If I have the funds already are done I will sure option to go for a full-time whole life insurance as this is much better than choosing to settle for one that is only short-term as the benefits will not be very much compared to one that is going to cover whole life.

 

[btaliat]

So far I understand the term life insurance to mean insuring for some specific period of time and the whole life coverage to mean insuring for the whole life time. I think the better one will be determined by the goal of the insured. For instance, someone that wants to enjoy his insurance premium will go for term life but one who want his family to benefit will go for whole life

 

[Setho]

At the end of the day it is always going to go down to the amount of money that you have and you are willing to inject into an insurance cover. If you have the money it is always better to go for the full life assurance as it offers more guarantee and more protection.

 

[Jasmine]

While life insurance is basically for those who have a family to look after. For example, a family man/woman can get a whole life insurance and when he/she dies accidentally, the spouse and kids will get the benefits. Term life is for yourself to get financial coverage in your life time.

 

[Mandy96]

We can say these two types of insurance policies are the same but the main difference I see between them is the duration because that’s what really makes one different from the other one. There might be other reasons as to why they are not the same but if we take a look at it we will see that they both function almost the same way

 

[Augusta]

For me I will go for the whole term insurance because I'm looking at leaving a package for my children when I'm gone. So whatever I have will be made known to them after my demise.but for your question you need to go for whichever works best for you and your family

 

[sincerem]

If I am going for any option between 'term life or whole life insurance package. I'll simply opt in for 'term life. With that one I can receive the benefits within a specific duration of time without something bad occuring, or waiting far too long for whole life insurance package.