Which Is Better - Term Life Or Whole Life Insurance?


Term life insurance and whole life insurance are two popular life insurance policies. The main idea for both term and whole life insurance is granting required amount of money upon the death of the insured person. But there are some big contrasts between the cost as well as the advantages of each life policy. Here's a rundown of the two types of life insurance so that you can choose the perfect choice for your family.

Term Life Insurance:

Term life coverage is a great way to secure your loved ones financially, if you were to die before the policy due time. When you buy a term insurance, the protection period will rely on the duration and type of the term insurance you purchase. After the term runs out, policyholders will need to purchase a new life insurance policy if they want to keep coverage in force.

The death benefit is paid to the policy’s beneficiaries only if the person dies during the insured period. If not, the plan gets terminated, and the policy insurer has no further commitments towards you. Term life insurance is less expensive than permanent life coverage.

Types Of Term Life Insurance:

• Level Term Life Insurance: In this type, both the insurance premium as well as the death benefit remains the same for the underlying term.

• Decreasing Term Life Insurance: The insurance premium remains the same, but the amount of the death benefit gets decreased every year. This can be a smart approach to secure your beneficiaries from paying your loans. The lowering of the death benefits indirectly implies that the need to insure against your loans also gets declined.

• Annual Renewable Term Life Insurance: The insurance premium is adjusted annually for a 1 year term. Generally, each year the premium goes up. The premium is cheaper in your younger years.

Whole Life Insurance Gives Lifelong Protection:

Permanent life coverage is proposed to provide insurance for your entire life. The premiums for whole life insurance are generally higher when compared to term insurance. A share of the whole life insurance premium is utilized to develop a cash value. This money can be used in many distinctive ways, enabling you to apply for a loan against the cash value.

Whole life provides coverage throughout the entire lifetime as long as the premiums are paid. A death benefit is given to the beneficiary on the death of the insured person. The policy holder can withdraw or borrow the policy. The maturity age of the policy is usually set for 100 years. If the insured person is alive above the maturity period, then the amount is given to the policyholder.

Few Types Of Whole Life Insurance:

• Limited Payment Whole Life Insurance: The insurer pays the premium for the specified time to ensure lifelong protection. Naturally, premiums will be higher since you're paying it for a definite period.

• Single Premium Whole Life Insurance: Instead of paying the monthly or yearly premiums, a lump amount is paid in one single stretch.

• Level Premium Whole Life Insurance: Premium installments are paid as long as the policy holders are alive.

What To Choose?

It relies upon your own circumstance and life goals. You can contact the insurance professionals at Driscoll Insurance Services to review your existing coverage. We’ll also help you shop the companies to see which policy is right for you. You can also submit an online request form to receive your free insurance quotes!

Author Bio : The author provides solutions for people to choose between the different types of life insurance. The Driscoll Insurance Services is a top rated insurance agency in Pittsburgh servicing since 1976. We provide in-depth coverage not only with term and whole life insurance, but also with auto, home, and business insurance.