Term Life Insurance vs Whole Life Insurance – Which is Best?

It is normal to worry about the wealth of your family. The economy of our country has suffered a lot in the recent years and the global crisis effects are still visible nowadays. Many companies were closed and a huge number of people lost their jobs. In this hostile environment, estate planning for a long term has become a necessity.

imagesThis planning must also include worst case scenarios, like the death of a wage earner and its immediate effects. This is why we advise you to apply for term life insurance plans or whole life insurance plans. Read more info about these types of insurance and decide which one is best for your needs.

You will have practically to choose between permanent protection and temporary protection.  The last type comes cheap only for short periods of time. Term life insurance is the best choice if you feel that you need protection for 5 or 10 years. Premiums will be really cheap (except if you apply for very large amounts of coverage) and will not reach astronomical figures.

In term life insurance plans, premiums are periodically renewed, accordingly with some age charts and the health of the insured. Term life insurance balances acceptable premium costs with generous death benefits. You should be aware that the benefits are collected only if the insured dies while under coverage.

Whole life insurance might look a bit pricy right from the start.  But, this policy becomes advantageous and cheaper than term life insurance after 20 or 30 years.

You will notice that the premiums will be kept by the insurer at the same value. A portion of your savings is invested by the insurance in market products (usually mutual funds) and if those investments are profitable, you will receive a fair share from the profit. And, besides that, savings have a cash build element. That means more money for your beneficiaries.

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by Ciprian Gurgu