What is term life insurance?
It is a death benefit cover that will supply you financial protection for a limited time. In other words, you apply for life cover to provide you with assurance for fixed periods; the most common terms are ten, fifteen, twenty and thirty years. If the insured person dies within this period, the insurance company will pay out the money to the beneficiary. If the insured person does not die before the due date of his or her policy, it can either be terminated or renewed. Some companies do have cash back guarantees on term life cover; you have to be sure what is the terms and conditions.
What is whole life insurance?
It is a policy that a person buy to cover them for their entire life or until the plan mature. The insured person takes out this plan as financial protection for his or her family. The family or beneficiary will receive a lump sum of money in the unfortunate event when the insured person dies. The funds will help with daily necessities, debt, education fees, mortgage, medical bills and so forth. The plan will be in place for the person entire life as long as all the terms and conditions are met each month. In other words, the policy will be canceled if the insured person did not pay the monthly premium that was calculated and signed off.
It is a fact that whole life cover is more expensive than term life assurance. The reason is simple; it protects you throughout your life where term life only covers you for a specific time.
It is also known as the death benefit. When a loved one dies, they leave behind great heartache, but also financial struggle. And this is where whole life comes to play; it will replace that income.
How to choose the type of insurance that will suit you and your family?
Calculate how much you can afford to pay on a premium and compare the quotes on both types of life cover. It is a good idea to have either one of the two because at least you will be protected and your family will be taken care of. Accidents or illness do not ask when you are ready; it just happens out of the blue. Having some protection is better than none. So, be at rest and make the decision today to get life cover for you and your family.
If you have more question, visit our Frequently Asked Question page!