Insurance is important to obtain, but people are confused between term vs whole life insurance. Each type of life insurance has its own pros and cons; the best way to make a decision is to understand each type of policy that will suit your need. Choosing insurance may be a challenge, but with the correct information, you will be certain that you have the better insurance.
Term Life Insurance
Term life insurance is a policy that will provide a benefit to your family or designated beneficiaries in the event of your untimely death as long as you have paid for the premium of your insurance within the term of your demise. Term life insurance is cheaper because it does not have a cash value. Always remember that when you decide to get a term insurance, get a guarantee that the insurance premium you pay is the same for periods of five up to 30 years, giving you the peace of mind that your insurance company will increase your premium unknowingly.
Whole Life Insurance
In whole life insurance, there is an accumulation of cash value. You and your family can benefit from this while you are still paying for the insurance. You can use the cash value while you are still living; whole life insurance is deemed to be a permanent insurance. The premium for this kind of policy is higher, but will be the same for the natural life of the insured.
In summary, term life insurance is good for you if you just want to have insurance coverage for a short period of time but with many benefits. With whole life insurance, you are generating a retirement fund for you and your family.
The decision is up to you. Life insurance is becoming a need nowadays. The best time to obtain some is now. Having insurance is protection not just for you, but for your family that you may leave behind in the future.