June 19, 2011. Paul Hixon
credit: seyed mostafa zamaniA person who is considering getting a life insurance would be torn between choosing a whole life insurance versus the term insurance. Whole life insurance is defined as an insurance that provide death and protection for the insured’s entire lifetime.
Term insurance on the other hand only has a temporary coverage which usually runs from 10-40 years. Each has its own advantages depending on a person’s situation.
As what whole life insurance definition mentioned above it covers a person’s entire lifetime. This type of insurance is suitable for those individuals who have insufficient retirement saving. It is ideal because in whole life insurance part of the premium goes into to investment account which you can get before you die. You can get dividends if you own a participating whole life insurance policy. This type insurance also has a lock-in premium meaning it rarely or not increase at all through your lifetime. Whole life insurance also guarantees you death benefits that never decreased.
Term insurance covers a certain amount of time which would appeal to most because they do not see the necessity of having life insurance after retirement where their children will have a stable income. There is also a term insurance that do not require medical exam. No physical life insurance is very convenient because you don’t have to submit blood and urine prior to application. Some would even start coverage of the insurance 24 to 74 hours after approval of application. However, you are required to fill out a health questionnaire containing your medical history wherein one should be honest. Downside is if you have a major health problem you will likely be declined.
Each one of us have a different situation and some might be better off with the whole life and some ideally should have term insurance. To know what insurance is ideal for you, consult a professional prior to getting a life insurance.
Updated June 19, 2011. Published April 27, 2011. Paul Hixon
