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It is not really a question of "better", as it is of "different".
Term insurance may be thought of as "pure protection" in the sense that it provides coverage on ones life for a stated term. If the insured does not die while the policy is in force, it expires, and there is no accumulated value remaining. Stated otherwise, there is no element of "savings" with this kind of insurance, and therefore, it is less expensive than "whole life", all other things being equal.
Whole life provides the same type of life insurance protection, with the added element of "cash value". That is, a part of every premium dollar is applied to some sort of savings mechanism. The latter can be within the policy itself, or in an outside vehicle connected with the policy, such as a mutual fund. Because of this element, whole life is more costly than term. Yet, because of the accumulation of value, after a period of time, loans can be taken from the policy, and/or the policy can become "fully paid-up" such that no further payments need to be made.
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What is the difference between term and whole life insurance if there is any?
The difference between term life insurance and whole life insurance is that a term policy covers the insured for a "term of years" whereas a whole insurance policy covers the insured for the entire life period.
What is the major advantage of term life insurance over whole life insurance?
Cost. Other than that, there are no advantages. Whole life insurance lasts your whole life. It pays upon your death a predetermined amount. Once the designated term on term life expires, you have no more life insurance. Term will be significantly cheaper depending on your age.
What are the benefits of purchasing term assurance?
Term life insurance will protect the policyholder should his or her life end unexpectedly. Term life insurance is often the cheapest of all available insurance. Usually, term life insurance can be converted to whole life insurance during the term. Whole life insurance will never expire and the rates will remain constant throughout the policyholder's life.
What type of insurance can be borrowed against term or whole life?
Whole Life
How can one define whole life insurance?
Whole life insurance varies from term life insurance because it is valid for the insured's entire life instead of just for a specified amount of time. Whole life insurance typically has premiums due each year.
Is term life insurance a good option for seniors, or should I consider whole life?
Term life would be a better option than whole life insurance. Whole life insurance is better for early twenties-middle aged people. However, term life generally has an expiration and rates may go up at that point.
Should I look for affordable whole life insurance, or is it better to just buy a term life insurance policy?
Whole life insurance does come with several benefits. I would personally suggest term life insurance the the cost savings.
Should I purchase term life or whole life insurance?
Term life insurance does not build up accumulated value and ends when the insurance policy period ends. Whole life insurance does build up accumulated value, has tax advantages, but costs more than Term Life insurance. You can determine which product better meets your insurance needs.
Where can someone get term or whole life insurance?
One can get term or whole life insurance through various insurance agencies. Some insurance companies that provide term or whole life insurance include MetLife, AAA, and State Farm.
What is the difference between term and whole life insurance if there is any?
The difference between term life insurance and whole life insurance is that a term policy covers the insured for a "term of years" whereas a whole insurance policy covers the insured for the entire life period.
Where can one compare term life insurance versus whole life insurance?
There are many places where one can compare term life insurance versus whole life insurance. One can compare term life insurance versus whole life insurance at popular on the web sources such as Wealth Pilgrim and MSN Money.
What is the difference between term life insurance vs whole life insurance?
A term life insurance is during the insurer's life only. When he or she is gone, then the insurance ends. The whole life insurance on the other hand has what the term life insurance covers plus more.
Where can a person get more information on whole life term insurance?
There are several places where a person could get more information on whole life term insurance. Websites such as Metlife and Prudential have information about whole life term insurance.
what are the advantages of long term life insurance vs whole life insurance?
The basic difference between long term life insurance and whole life insurance is that a term policy is life coverage only and this is also considered an advantage. One can buy a long term life insurance for periods of one year to 30 years, whereas whole life insurance is a combination of a term policy with an investment component.
What is the difference between whole life insurance versus term life insurance?
Term life insurance is an insurance that is set for a specific time period, for example, one can obtain term life insurance for 30 years. Whole life insurance covers one from application to death.
What is the major advantage of term life insurance over whole life insurance?
Cost. Other than that, there are no advantages. Whole life insurance lasts your whole life. It pays upon your death a predetermined amount. Once the designated term on term life expires, you have no more life insurance. Term will be significantly cheaper depending on your age.
What are the benefits of purchasing term assurance?
Term life insurance will protect the policyholder should his or her life end unexpectedly. Term life insurance is often the cheapest of all available insurance. Usually, term life insurance can be converted to whole life insurance during the term. Whole life insurance will never expire and the rates will remain constant throughout the policyholder's life.
