Life Insurance Policy : Get It For Yourself
At certain point of your life, people will start to think of insurance. You may have gotten insurance coverage because your parents have bought them for you, but you want to know more or you just want to add more coverage to your existing policy. So the question to ask: What kind of life insurance should I get? What is Whole Life Insurance? What is Term Life Insurance? Which is better for me?
I hope I can answer these questions in this article.
What is Whole Life Insurance?
A whole life Insurance is essentially an insurance coverage that has cover for you if there is an accidental death or physical disabilities. There is also an additional cash value for this type of insurance. The longer you keep this insurance, the higher is the value of the returns if you decided to give up the policy.
In short, there is MONEY in this type of insurance.
This is a popular for working adults who have an established career or people who are more financially stable. The reason is that the whole life insurance is usually very expensive. This is due to the extra cash value of the insurance.
This is good in the viewpoint of personal finance as there is a portion of investment
There are people who wants just the coverage for themselves. That is where Term Life Insurance comes into play.
What is Term Life Insurance?
A term life insurance pays the insured a much higher sum of money if there is an accidental death or physcial disabilities. It is cheaper to buy a term life insurance because there is no cash value to the policy.
In other words, if you give up the insurance, no cash for you upon surrender.
This type of insurance are suitable for people who are have little financial abilities. People who are in their late 40s who have not never buy insurance at all should also consider this type of insurance.
So which one should I choose?
If you ask me, I say, have a mix of both. The reason is that whole life insurance generally has pays the insured lesser in events of death because part of the money has been used to generate cash value. In view of the rising cost of medical expenses, I do not recommend to have a lower coverage for yourself.
Term life insurance are also very affordable. The policy can go as low as just $10 per month for a good coverage. True, there is no cash value in return but the coverage is there for you at a very low cost.
Get both types and to ensure a balance in terms of cover and cash returns.
Isn’t it good to have the best of both worlds?