Whole Life Insurance
Whole life insurance is one of the two major types of life insurance available today, the other being term life insurance. Not surprisingly the battle of term vs whole life insurance is an ongoing one and many people find it difficult to choose which type of policy is the right one for them. Understandably there are many factors that can influence the decision, however, in general the following apply.
When to choose a whole life insurance policy
With regards to insurance whole life policies are a long term commitment –they run for the rest of your life. They only pay out the death coverage in the event of your death, and then only on the proviso you have kept up with the premium payments. If you stop making the payments then the whole life policy insurance ends and you normally forfeit all of the money you have paid in until then.
A whole life insurance policy is a great way to ensure you leave money for your beneficiaries after your death. You can easily buy whole life insurance online and although there are no formal stipulations it is advisable to be over the age of 50 before taking out a policy. If you are any younger than this then you may find you pay in more than the amount of cover your beneficiaries eventually receive.
Term life insurance is designed to cover the insured for a pre-determined number of years. This can be anywhere from ten to fifty years. However, when the policy ends all of the money paid in is kept by the insurance provider. The only way that a term insurance policy pays out is if you as the insured die before the terms of the policy end.
Term life insurance vs whole life insurance
So which out of term and whole life insurance is the right choice for you?
Well generally speaking whole life insurance rates are higher than those on a similar sized term life policy, simply because a whole life insurance policy always ends up paying out. The main factor to consider though is the reason behind getting life insurance in the first place – if you want to leave money to your family then look for a suitable whole life insurance quote. If however you just need cover for a specific period of time then term life insurance is probably more practical and cheaper.
When it comes to insurance whole life vs term insurance is always going to be grounds for argument. So, the best route to take is to decide what exactly it is you want from your insurance policy and work from there.