Buy a term plan and secure your family
Term insurance is the simplest form of life insurance at economical premium charges. It provides pure protection to your family members against any financial burden caused because of your untimely death. However, if you survive the term of the plan, you are not given any maturity benefit. There are also many riders offered which can be added to customize your own term plan.
A whole life term plan is more of financial investment. It provides coverage throughout the life of the policyholder, therefore, in case of the demise of the insured, the family members receive the death benefit. Under such a plan, they accumulate bonuses or other additions throughout the life of the plan.
A term life insurance policy is the apt choice for someone looking for pure protection against the loss of their income.
A whole life term plan is the ideal choice for someone who is looking for coverage beyond the basic need of providing a source of income when they are not around.
For the better choice between whole life and term life, the conclusion can only be drawn after taking into consideration factors such as age, the intention behind opting for life insurance, etc. For someone who is young, the better choice can be taking a term life plan and later converting it into a whole life term plan, this helps in saving on the premium payments. However, this route should be taken only after being thorough about the term plan and with your insurance provider about the same. For someone who is elder, the whole life term plan is a good choice, as this not only provides coverage for the entire life but may also be more cost-effective.
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Ideal Choice For You
The ideal choice for you depends on your needs and requirements. If you are someone who wants to keep the premium payments low and invest extra money in other investment vehicles, you can opt for a term plan. On the other hand, for someone who is looking for a life insurance plan that does not have any expiry date and wants to build the wealth over the years so that it can be used when the need arises, the whole life term plan is a good option.
The decision of which to purchase out of whole life and term life should depend entirely on your financial needs and aims. Life insurance is a financial vehicle that provides a lot of flexibility and power in meeting the various milestones in life.