subject: The Difference Between Whole Life And Term Life Insurance [print this page] If you have decided that you want to invest in insurance you may be faced with a very difficult decision. Whole life insurance and term whole life insurance are two very different things that answer to many different aspects in your life as well as in your pocket. You want to make sure that you invest in the proper type of insurance as life and tern insurance can be more damaging than helpful if not chosen wisely.
Of course, before you can begin to even think about either of the two you need to first understand what the difference is, because this will help you figure out what is best for you and your family. It's also a great idea to turn to a professional to assist you with this important choice as a lot of money will be invested and you want to make sure that you and your family are covered well in case the unthinkable happens. Making sure that your family is secure long after you are gone and that they are left with money and not bills is of top importance and through whole life insurance or term whole life insurance this can be achieved.
Whole life insurance is insurance that lasts a lifetime. It doesn't have an ending term. This insurance is a better choice for a younger and healthier person as the life expectancy is much longer and it will be used longer. If you plan on paying the insurance for the next 20 years and are ready for such an investment and commitment, it's the best choice. Keep in mind however, that it comes at a high price, and you need to make sure that you really are ready for the commitment. In the case with whole life insurance you can actually cancel at any time, and a part of the invested money is returned to you. The premiums also stay the same over the years, so you don't have to worry about any increases. The premium is invested and grows over the years, then when either cancelled or should the unthinkable happen happens, the agent takes the commission and your family gets the difference.
The difference with term life insurance is that it basically has an ending term, which is usually 10 years. It's less expensive and more appropriate for someone who doesn't expect to surpass those 10 years. It's a very good investment. One thing to keep in mind however is to know that if you choose to cancel your term life insurance you lose the money you have invested thus far.
The decision between term life insurance or whole life insurance is a very difficult one and you need to be fully educated before you make a commitment. If necessary consult with a professional to determine which is best suited for you.
The Difference Between Whole Life And Term Life Insurance
By: Iftikhar tirmizi
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