Term life and whole life are the two most common types of life insurance plans you can buy. While term life insurance is designed to provide financial coverage for a fixed term, for example, 10, years, 15 years, 20 years, etc., whole life insurance does not have any fixed term and is designed to provide coverage until the death of an insured person (that’s why it is called whole life insurance).
Generally speaking, term life insurance plans are cheaper than whole life (has lower premiums and are required to pay premium only for the insured term). Nevertheless, term life also offers less coverage. The premiums for the term life are calculated by multiplying the amount of coverage (the face value) with a factor that depends on a person’s age during the policy issue time and the type of term insurance.
Whole life policies, on the other hand, have higher premiums. Since you pay higher premiums, you also get better coverage compared to a term life policy. This type of insurance policy provides coverage for the entire life of a person (until he dies). A whole life insurance policy is meant for a person who wants to help his or her family with finances even after he/she dies.
You can choose the policy depending on your priorities.
Generally speaking, term life insurance plans are cheaper than whole life (has lower premiums and are required to pay premium only for the insured term). Nevertheless, term life also offers less coverage. The premiums for the term life are calculated by multiplying the amount of coverage (the face value) with a factor that depends on a person’s age during the policy issue time and the type of term insurance.
Whole life policies, on the other hand, have higher premiums. Since you pay higher premiums, you also get better coverage compared to a term life policy. This type of insurance policy provides coverage for the entire life of a person (until he dies). A whole life insurance policy is meant for a person who wants to help his or her family with finances even after he/she dies.
You can choose the policy depending on your priorities.
