Whole versus Term Life Insurance: Which is Better?
Shopping for life insurance is a tough task. But reading articles like this one proves you’re committed to doing your research, which is deserving of congratulations! Trying to find out what type of insurance is best suited to meet your needs and protect your family in the long-term is not only smart, but necessary.
There are various questions that you need to answer before you select a policy -
How do you buy life insurance?
How much life insurance do you need?
How much does life insurance cost?
How long should your life insurance coverage last?
But the crowning question of them all is, what type of life insurance policy is best for you: whole or term life?
Whole Life Insurance
Whole life insurance is exponentially more expensive than term - because there’s no period of time after which you’ll need to renew it, since it’s a permanent policy. That may sound enticing but, if you’re a smart financial planner, you shouldn’t need life insurance for your whole life. Will your family be dependent on your income even after 30 or 50 years? Will you still have a mortgage payment? Or do you think you’ll need to make use of the cash value offering in the form of savings? That’s the true benefit of whole life policies - you can borrow against your policy and use that money during your lifetime, without taking away from the face value of the whole life policy.
Term Life Insurance
As far as deals go, term life is the better of the two with regard to cost. Term life is much cheaper than whole life because it doesn’t hold a cash value or savings option like whole life insurance policies do. Term life policies let you to select your desired term and coverage amount, while also freeing up your money that would’ve otherwise been locked into whole life plan savings. It all depends on how much money you need at the moment, why you need the life insurance coverage, and when do you expect benefits to be paid out. Term life insurance is a lot like car insurance in that it only offers benefits when something happens - but that’s exactly what insurance is supposed to be, right?
Providing for your family’s financial future is overwhelming, no matter how old you are. But that’s why we’re here to help! iLifeInsurance is an insurance broker, not an insurance company. That means we have no incentive to hook you up with pricey, low-value policies and plans. We work for you. Our online tool gives you the power to choose what you want, at the price you want, by letting you compare and contrast various life insurance policies for yourself. We also have insurance experts on stand-by to help you reach a decision.
Click here to see what we’re talking about!