Life Insurance For Yourself
As you grow older, people will definitely look at insurance. You may have gotten insurance coverage by the virtue of your parents, 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 pays the insured in the events of 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 cash returns if you decided to give up the policy.
In short, there is MONEY in this type of insurance.
This is a prime choice for people who have an established career or people who are financially sound. The reason is that the whole life insurance tends to cost more. This is due to the additional feature of cash returns in the insurance.
There are also people who likes it from the viewpoint of personal finance as there is investment involved
There are people who wants just the coverage for themselves. So I believe that the Term Life Insurance comes into play.
What is Term Life Insurance?
A term life insurance pays the insured a much higher sum of money in the events of accidental death or physcial disabilities. It is not expensive to buy a term life insurance because there is no cash value to the policy.
In short, if you give up the insurance, there is no money back.
This type of insurance are good 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 look at this type of insurance.
So which one should I choose?
Here is my suggestion: have a mix of both. The reason is that whole life insurance, in general, has lower coverage for you because part of your payment has been used to generate cash value. In view of the rising cost of medical expenses, it is not wise to have a lower coverage for yourself.
Term life insurance are also very affordable. The policy can go as low as just $10/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.
If you get both types of insurance to ensure a balance in terms of cover and cash back.
