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Deciding Between Term and Whole Life Insurance

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In everything we do, we have to be sure that we would be able to get the best results. This is especially true in looking for life insurance as there are two primary choices out there – term and whole. Both have different terms and benefits therefore you have to do sufficient research in order to determine which suits you better in the contest between whole life insurance vs term life insurance.

The predominant difference between the two life insurance policies is characterized by the presence of an investment benefit in a whole life insurance. You would have the option of withdrawing the cash value of your premiums as well as getting dividends as soon as you have made a sufficient  number of payments. A term life policy on the other hand only has life insurance and your beneficiaries would have the right over it if you bite the dust while the insurance is still within its prescribed term which is usually between 10 to 30 years.

The cost of the premium for each insurance is another difference between the two. In a whole life insurance, you pay higher premium because of additional costs brought about by fees, commissions and other charges that are direct results of setting up an investment. Get a policy for a minimum of 20 years to maximize your investment.

People tend to veer towards no medical exam term life insurance because they find it cumbersome to go through a physical exam and wait for its results before you finally get an insurance.

You have to keep in mind that term life insurance usually renews annually therefore it is possible that your premium payments will increase. This is because with each passing year, you age and your health diminishes. If you want to have a fixed premium payment, opt for a guaranteed level policy.

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