When it comes to Life Insurance, it is sometimes easy to sweep it under the carpet. We can’t predict the future but we should be prepared for the unexpected. Life Insurance policies can prove complicated to the layman and deciding on a policy that is right for you can sometimes be stressful and confusing.
There are basically two forms of Life Insurance – Whole Life Insurance and Term Life, so which should you choose? Comparing the difference between Term and Whole Life Insurance and the advantages it brings you will depend on your circumstances. Term and Whole Life Insurance policies bring different benefits of financial protection and you should evaluate the benefits that each policy provides before you decide on the right protection for you.
Term Insurance Policies pay out the sum insured to your beneficiaries if your death arises within the term of your policy contract. If your contract runs from 1 to 30 years, your beneficiaries will receive benefits if you die within that period of time. When your contract expires, and you are still alive, you and your beneficiaries receive nothing.
Whole Life Insurance
Whole Life Insurance brings permanent assurance that guarantees death benefits to your beneficiaries whenever your death takes place. With a Whole Life Insurance policy you can guarantee your loved ones receiving a payment upon your death whatever age you die. Whole Life Insurance also includes a cash account that works as an investment which increases in value over the whole term of your coverage. During your lifetime, you may use the savings of your policy as collateral for a loan. Some Whole Life Insurance policies may be cashed out when the value of the cash account equals the death benefit.
The main difference between Term and Whole Life Insurance is the cost. Term Life Insurance is cheaper due to the duration of the contract. If you are looking for shorter term cover for the duration of your mortgage loan or until your children have finished their education, Term Insurance will bring you peace of mind if the unexpected happens. A Whole Life Insurance policy will provide an investment vehicle that will also provide protection for your loved ones during the course of your life. Whatever policy you choose will depend on your circumstances and what you require from your cover.
The cost of either policy will depend on your age and health, with the younger, healthier age group securing a cheaper premium. Get a Life Insurance Quote will bring you the best and cheapest quotes from the top insurance providers and help you make the right choices that work for you.
The most important reason for Life Insurance is to provide financial cover and peace of mind for your loved ones. Get a Life Insurance Quote will give you the helping hand to provide that much needed security blanket and help you sleep peacefully.