What Life Insurance do I need? Term Life Insurance or Whole Life Insurance?
This is a question that countless people seem to be facing when it comes to gaining a life insurance policy. Year in year out this question provokes confusion as people can’t decide which is the better policy to go for; term or whole life insurance. The problem and root of this confusion however doesn’t stem from which plan is better; it is down to the fact that neither of these policies have been explained properly so a consumer can’t tell which one will be best suited to their needs.
There has been an on-going debate when it comes to term life insurance and whole life insurance. This debate has been raging for some time now but the question itself is flawed. Neither of these policies represents the better option as both of them serve two different purposes. It depends on what you need and want from your insurance policy as to which one you opt for.
The main reason that people get life insurance is so that they can protect against loss. It is because of this reason that you should get your life insurance policy as soon as you can. If you can afford to get a whole life insurance plan then go for it, if not then maybe you should think about opting for term life cover?
Ok so what is it that makes these two policies so different? Well let’s start with the main one; as its name suggests term life insurance is a form of cover that only covers you for a certain amount of time. So for example you could take out this form of cover for one year or ten years; basically for however long you feel you need it or however much you can afford. This life insurance then covers you for that period of time only. Whole life however is a policy that you will take out and keep for the entirety of your life. This is why a whole life plan is more expensive than term as term life insurance might never have to pay out to you whereas whole life insurance will have to eventually pay out to you. If you were hoping to take out whole life insurance but you feel that you can only afford term, think about it this way; the temporary life insurance that term provides to you it better than having no coverage at all.
When you are at the point of making a decision as to which policy you wish to take out it is important that you examine exactly what your coverage needs are. You should look at why you are taking out your plan and have an insight into your health if you have any expectation or estimation of when you feel you are going to pass away. This could be the deciding factor of which cover you decide to take out.
My only advice to you when it comes to deciding which form to take out is to take a good look at your needs, medical health and finances and make a decision which is based on your needs rather than which plan is classed as being the best.