Read This Before You Buy Your Life Insurance

Term life insurance or whole life insurance?

What is the difference between whole life insurance and term life insurance? Some people bought life insurance for protection but without understanding the product, they thought they are insured and when they learned about what they have bought they regret, they started blaming the insurance agent for their wrong recommendation, but all these can be prevented if we study all individual policies and choose the one that meet our needs.

Term life insurance

Term life insurance is an inexpensive insurance but it is designed to last only for a stated period of time, therefore, seniors are advised to purchase a permanent life insurance. Unfortunately many people delayed to get insured when they are young and when premium was low at that time, as they get old and their health deteriorates, they have to pay a higher premium.   

Term life insurance is designed to give the buyer a very low premium within a specified term or period, as the name suggested, but it has no cash value, that is, if the buyer purchased a term life insurance policy for a period of 10 years, he is only protected within this period of time, if nothing happened he needs to pay the premium for 10 years, and after this period, he will get nothing upon what he had paid, because the cash value is zero for term life insurance.

Whole life insurance  

Whole life insurance is the initial policy most insurance experts recommend because the buyer benefits the cash value of the policy. If the buyer purchased an amount of sum insured, let’s say $100,000; he is protected for this amount, should anything happen to him the beneficiary will be paid for the above amount, but the good thing is after a few years (may be 3 to 5), the cash value has accumulated, and if the buyer ceased to pay for a few payments the cash value will pay off for the arrears automatically. Another good thing about whole life insurance is if the buyer purchased an amount of $100,000 sum insured, the amount can be increased after some years, that is he is insured more than the above figure, the whole life insurance is also known as saving policy.  

Of course, most people would rather pay and get back their money even if the premiums are higher, we can request for quotes of term life insurance and whole life insurance, make a comparison of the two, and see which suits us more. Choose wisely, think carefully before we buy.

To avoid buying an inappropriate policy, it is advisable to study the product thoroughly, you can log on to life insurance site to know more about different types of policy in the market, so please read them before you buy your life insurance.

Both term life and whole life insurance have their advantages and disadvantages, you can know more about these by visiting define term life insurance or go to whole life insurance definition, or you can know more about other types of insurance by visiting