Tag Archives: Term Whole Universal Life Insurance

Term Vs Whole Life Insurance – Get All The Facts Here

If you are still considering which to buy – term or life, no worries as I'll have a showdown of term vs whole life insurance. If you want to get term life insurance without personal information, then search the browser.

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With regards to whether it is a term or whole life insurance, both have the same objectives – to provide monetary coverage in times of disaster. However, if you look into details, you'll discover a vast difference. 

In this article, I'll show this differentiation so that you can make an informed decision about which to purchase.

Term life insurance

As the name suggests, a term policy is only good for some time. The normal coverage period ranges from 5 years to as long as 20 years. These are some going as far as 25 to 30 years but these are not commonly bought.

The premiums can be paid yearly or upfront in one lump sum. If nothing happens during the period a person is covered, no payment will be paid and all the money paid will not generate any cash values.

Term policy is generally less expensive as compared to whole life policy and is considered entry-level types of insurance. Individuals can choose to buy a sum assured many times their worth and should disaster strike, the insured sum will be paid.

Whole life insurance

As the name suggests, the whole life policy is for the entire life. It is more complicated as compared to the term coverage. It can be viewed as providing dual objectives – protection and investment. 

This is because unlike the term assurance, the whole life will protect while at the same time accumulating cash value over some time. The accumulation of cash value normally happens in the long term and not in the short term.