Categories: Business & Finance

Which is best: Whole life insurance or Term insurance?

July 9, 2016

People are continuously on the lookout for an opportunity for securing their life and the financial status of them and their families. Insurance plays a great role in providing them with sense of security. It also helps you make the considerable saving, which might not otherwise be possible, considering the necessary financial responsibilities and eager spending. Now that you have decided to get yourself an insurance for a better and safer financial future, the question that arises is, which should you go for, Whole Life Insurance or Term Life Insurance? Before we get to answer this question, it is first necessary that we are well aware of what both these terms mean.

What do you mean by term life insurance?

About Term Life Insurance-

  • The term life insurance, in contrast to the whole life insurance, is stretched over a shorter span of time.
  • This is of excellent help to individuals who keep sick and are looking for financial support and benefits within stipulated amount of time. Term life policy serves as the best economic cure for individuals meeting with accidents or having to undergo daily medical therapies.
  • This is also the best option you have, to safeguard yourself against unexpected circumstances.

Term Life Insurance, also regarded to as term policy can be diversified under three heads, with various levels of sum assured. These three categories include- increasing benefit, decreasing benefit and level benefit.

What do you mean by whole life insurance?

About whole life insurance-

  • Unlike term life insurance, the whole life insurance aims towards covering your entire life against accidental and unwanted medical situations.
  • The typical policy tenure for this insurance is your entire life or hundred years, whichever comes first.

This means you are more or less tucked in by a blanket of safety for the rest of your life, with the whole life insurance.

Why Choose Term Life Insurance?

Different people have different requirements, which are mainly the deciding factors as to which insurance suits them the best. Another factor that helps an individual decide upon which insurance policy to choose to be insured with is their present stage in life. Term insurance is more suitable for young and single professionals. They can easily opt for a term insurance of a large sum insured amount, with a bearable premium amount of Rs. 2500 and upwards, each month. This is much convenient and extends a high-risk cover to the insured individual.

Why Choose Whole Life Insurance?

While the term policy extends a high-risk cover for shorter periods and is much suitable for young professionals, the whole life insurance is the way to go for people aged above 40 and with family. The entire life insurance not only meets the lifetime security aspect with the help of the term rider facility but also meets the savings element of a family. Whole life insurance is the definite pick when looking for ways to safeguard the future of household members dependent on you.

When selecting your life insurance covers, make sure that you check the amount to be deducted as risk cover. Also, use a Web aggregator for term insurance comparison and assessing get the actual picture and estimate of your premiums.

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