Just like other people out there I’m also a bit confused in choosing the best insurance, whole or term life insurance. Basically, buying the wrong kind of insurance can do more damage to a person’s finances like any other financial product sold today. Some people say I’m better off when I buy term. Others say term can’t surpass the benefit of whole life after paying the policy.
Generally, term is the least expensive for of life insurance. It is written for a specific period of time. But, it only offers death benefits if the owner dies within that period. If not, then no money will be given back to the family when the term expires.
As for whole life insurance, it is indeed a bit more costly. But, it offers a lifelong protection with savings component. As long as you pay your premiums, a percentage is set aside and invested. As the policy gains value, you may be able to borrow up to 90% of your policy’s cash value tax-free.
So, there it goes. With all those explanations I can’t make a decision yet. I like the idea of paying less for a premium, but the thought of having both savings and protection is also very tempting.
Related posts:
