battle of the insurances

Term life insurance and whole life insurance both o er invaluable protection for the insured and their families.

Purchasing life insurance is a hefty decision. Whether it be term life or whole life insurance, the policyholder should carefully weigh out their budget, as well as the financial needs of their chosen beneficiaries.

Term Life

Term life insurance is not a permanent insurance plan. Typically, the lifespan of this policy can range from 10 to 30 years and is set in place to financially assist your dependents in case you die prematurely. If you pass while the plan is active, your beneficiaries will receive the payout. If the plan expires, the recipients will not receive the disbursement.

When you shop for term life, select a payout that will support your beneficiaries if you are no longer able to do so. This supplemental income will assist your beneficiaries in covering expenses that you would typically pay until they are able to get on their feet again.

Whole Life

Unlike term insurance, whole life is designed to remain e ective regardless of health conditions or time of death. After you have been approved for coverage, your policy cannot be terminated unless you fail to pay your premiums. Whole life policyholders can also expect benefits, including guaranteed cash value accumulation, earned dividends and easy access to loans and partial surrenders.

The cash value accumulated by whole life can be used via policy loan for college tuition, a down payment on a home or for early retirement income. This advantage is not available with term life insurance.

Making Your Decision

The conclusion? Carefully review the pros and cons of both plans before making your final decision. If you are looking for a cheaper premium and prefer to invest your money into a savings account for the future, term insurance is a viable option. If you are searching for a long-term investment that will not expire, a whole life policy might be right for you.