A lot of people are fearful with regards to starting to purchase life insurance. Simply because of the millions of the companies available online and almost half of them share and present wrong and inaccurate information. We are frightened by the total capacity of choices that we have to pick through before coming across the right guiding principle for our specific needs. However, just as a trip begins with just one single step, the chase of the ideal life policy started with one verdict.
It has been said that life insurance is always a sensitive topic for people. Death is inevitable and is not easy to talk about and deal with especially your future death. No one wants to talk about it especially to people who highly enjoyed their lives. But, even if people dislike talking and dealing with it, the reality cannot be changed that death comes as you may not see and predict it. In order to become prepared, practical and rational, consider life insurance.
Term Life Policy
Term life policy pays the benefits to the family of the insured who died. If the insured individual lives beyond that specified time, then there will be benefits to receive for his or her family. Additionally, there is not an investment or cash value in this kind of policy that is why you need to pay only the lower premium during younger years but when you get older, expect higher payments. As common sense dictates, the drawback of this policy is the fact that is has expiration dates and getting for another premium to obtain a different one in the future means paying higher in price. However, there are those renewable premiums that require only additional small costs.
Whole Life Policy
This is also called permanent life policy. This would be the second choice if you do not want to avail term life insurance. The whole life policy provides utmost protection all through the existence of the insured individual. If we say that term life insurance is economical, the whole life policy is expensive. During the early stage of this insurance policy, a single part of the payment will go beyond the fee of the insurance.
The overload amount will be placed in your savings account, and the savings account will be incredibly useful and helpful in the near future. In addition, it pays for the premium in order to keep up the policy. Furthermore, if the policy is withdrawn for some important reasons then the cash value which is placed in a savings account is said to be returned to the insured individual. This what makes whole life policy fair and rational.
Things To Ponder
Insuring your own life for your family and dependents in the future means a lot to your existence. This is not a bad idea after all. Losing someone is always disappointing, frustrating and of course, depressing. But, it would become worse if you lose and the family left will end up experiencing poverty. Whole versus term life insurance as mentioned above have both advantages and disadvantages. The decision will not depend on other people but your preferences and where you are comfortable. Obtaining a life insurance, may it be a term or whole life policy, requires time, money and effort that is why making a decision in a slow but surely way is vital.
Krystine Joy Sitjar is a freelance article writer that loves to write about insurance topics, and whole vs term life insurance is her favourite.