The Sooner You Know About Whole & Term Life Insurance The Better
Life insurance can be bought through many policies each offering different insurance conditions. Two of the most popular plans are term life insurance and whole life insurance which provide temporary and permanent coverage. But this is not the only difference. It is wrong to say one is better than the other as both can work great in certain situations.
When should you buy term life insurance?
Term life insurance provides temporary coverage. This means that the policy will be active for a pre-determined period of time. After the policy expires, the insured is no longer cover, so the beneficiaries will not be able to claim any life insurance proceedings.
Term life insurance is most advantageous for couples with modest financial means who plan on starting a family. It is also a good product for families who have children. It is never too late to buy a term life insurance plan.
Even seniors can benefit. Life insurance for seniors can be temporary too, insuring the elderly for as long as he or she needs. Term life insurance is one of the cheapest plans available and its rates make it a very convenient investment for many people!
When should you buy whole life insurance?
Whole life insurance is more complicated because it features a savings account and other investing opportunities. Whole life insurance excels when it is use in estate planning. This plan allows policyholders to avoid or cover probate fees.
Since it provides permanent coverage, it may seem like a more convenient policy for most people, but its high premiums can turn away many potential buyers. Whole life insurance can be profitable on the long-term though, as the policy’s account generates cash value. After a predetermined period of time, the insured can withdraw money from the policy’s account and cover important costs.
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Also published on Medium.