What To Choose Between Whole Life Insurance And Term Life Insurance?

Both term and whole life insurance policies have many advantages and you should look a bit into them before you make up your mind. The basics of life insurance stay the same: in exchange for premiums, the agency guarantees a death benefit which is paid to your beneficiaries. However, some elements differ from a policy to another and each of them has its ups and downs! Read more for a quick comparison!

1.       Whole life insurance

What is it?

tumblr_me2eqyFGDL1ragi7h-300x199It is a policy which provides permanent life coverage and builds cash value. Its advantages become clear: you will be covered for a lifetime and the policy saves money in an account! And on top of this, if you are in financial troubles, you can always borrow money against your policy’s value.

Who should buy it?

Whole life insurance can be a great real-estate planning tool as it lets you avoid several taxes. At the same time, it is an expensive policy and you need to make sure that you will be financially able to continue paying for coverage. This policy should be bought by someone who is financially stable and who wants an efficient real-estate planning tool!

2.       Term life insurance

What is it?

It is a policy that provides temporary life coverage. This means that the policy will expire and you can run out of coverage. Premiums stay fixed for the entire duration of the term, but if the policy is renewed, the premiums become variable and increase every year!

Who should buy it?

This policy is very cheap and accessible for almost anyone! Even if you have a pre-existing condition, you can get term life insurance without medical examinations. Temporary coverage allows for more flexibility as you will not be stuck paying for life coverage when you will no longer need it! Term life insurance should be bought by someone who is looking to start a family or is awaiting a child. The cheap premiums make it a perfect choice for newlyweds and young parents!

In conclusion, purchasing the right policy depends a lot on your needs and possibilities! If you want to compare different offers to make an idea about the price, do not hesitate to visit our website! We have the best quotes from the best providers!