Before discussing further perhaps
we need to equate our perception first, what is a term-life insurance and whole-life
insurance, generally whole life insurance and term life insurance can be perceived
as follows:
1. Term-life insurance is the most
basic form of life insurance, which is a policy that provides coverage against the
risk of death within a specified time period is relatively short and are
usually paid annually so that the premium to be paid is also very low compared
to other types of life insurance.
2. Whole-life is a permanent policy
is not limited to the date of expiration of such policies on term-life. So the claim
would have occurred as a result of premium to be paid is more expensive than term-life
premiums in which the claim is likely to occur.
From the definition and the
definition above, here I am describing a plus of minus-life term-life insurance
vs. whole-life insurance:
1. Term-life premiums less
expensive than whole-life premiums.
2. Sum assured for term-life insurance
is much greater.
3. Protection on term-life insurance
is a period of time while the whole-life insurance is for life.
4. Whole-life insurance have cash
value policy at the end of the contract, It is different in term-life insurance
has no cash value.
5. Cash value whole-life policy can
be made in cash collateral for the loan during the contract period, whereas the
term-life insurance does not exist.
6. The existence of a bonus dividend
to holders of the company's whole-life insurance policy, while the term-life insurance
does not exist.
That plus minus buy term life
insurance-life and whole-life insurance, which I think certainly both of the
insurance is good if we can adjust to the needs and abilities.
Indeed, for the moment, not all life
insurance companies sell term-life products, even some who said the world's
largest companies do not sell this type of life insurance; I personally do not understand
what reason?
Now, your task is to consult your agent about the needs of your life insurance needs. If your insurance agent is a professional, they will surely give the best recommendations for you, term-life insurance or whole-life insurance?
Now, your task is to consult your agent about the needs of your life insurance needs. If your insurance agent is a professional, they will surely give the best recommendations for you, term-life insurance or whole-life insurance?
I hope this article provides knowledge and tips on choosing insurance to you.
Wow. You have made a clear distinction between the two life policy type. So it depend on person to person to choose one between them according to their need and requirement. Also consulting an agent do helps a lot as they are more aware about the insurance market and policy factors.
ReplyDeleteI was just surfing on Internet and enter a keyword get your post really very nice post and informative too. Thanks to post here.
ReplyDeleteWhole Life Insurance
Whole life insurance is perfect for those who can afford a higher premium and want to avail of guaranteed death benefits and cash values. If you're young, have a limited budget and only looking for temporary protection then term life insurance is probably best for you.
ReplyDelete