The ongoing debate Term Vs Whole Life Insurance has rocked for decades, and it seems it will continue, forever. It is because of the simple fact that Life Insurance is a financial tool designed to serve different sets of individual objectives on a similar ground. Below you will find a subtle comparison between the two, and we leave the decision making to you.
Incredibly priced at a younger age Term Life Insurance, tends to become expensive with age. On the contrary, Whole Life Insurance costs the same across the entire lifespan. However, it may be on the expensive side for a short run, yet cheaper if planning to continue the policy until death.
Hence, individuals seeking short-term benefits can apply for term plans, while people who can afford the premiums for a lifetime, and reap the benefits during old age should invest in whole life insurance.
Term Insurance plans expires around the age of 80 and do not have cash values attached to it. It is an excellent choice for individuals who require strong coverage over a brief span of time, i.e., under 20 years.
Over time, Whole life builds decent cash value, and this can be utilized for instances like estate planning, inheritance, charitable gift and saving taxes.
Which is the Best – Term or Whole Life Insurance?
Depending on your requirements like heavy debts and several dependants, purchase Term Life Insurance policy. However, consider mixing Whole Life Insurance for your long-term objectives like marriage, children and their education, and your retirement.