I am very much confused between Term Life & Whole Life Insurance Policies ? Can Anyone expalin me the difference so that i can buy?
Total Comments: 8
Posted: Tue Apr 24, 2012 01:31 pm Post Subject: Difference between term & whoe life insurance
A term life insurance provides coverage for a specified time period, say for 10, 15, 20 or 30 years. It doesn't accumulate cash value with time. The premiums are more affordable than whole life policies.
A whole life insurance provides coverage for your entire lifetime. It has a cash value, which grows with time and one can borrow against the accumulated cash value.
This is the basic difference between the two. You can even check out the below mentioned link to understand them in a better way.
http://www.ampminsure.org/life.html
Posted: Thu Apr 26, 2012 02:32 am Post Subject:
Term life insurance is a good choice for people who are on a tight budget since it offers a lot of coverage for a relatively lower monthly premium. Whole life insurance, on the otherhand, is perfect for those who can afford a higher premium and want to avail of guaranteed death benefits and cash values.
Posted: Mon Apr 30, 2012 01:35 am Post Subject:
honestly, i was also confused with term life insurance and whole life insurance. :) Glad I came across this one. So, what is more practical to buy?
Posted: Tue May 01, 2012 06:33 am Post Subject:
So, what is more practical to buy?
No one here can answer that question for you without first doing an analysis of your present situation, your future needs, and your ability to work toward meeting those future needs.
Someone could say, "Oh, you have to buy term life, because it's the cheapest." And 20 years down the road you might regret the fact that you could have obtained a Whole Life policy that would have been more costly 20 years ago, but will be significantly less costly now and into the remaining years of your life.
You need to work with an agent face-to-face in order to properly determine your needs and objectives, and then to create the plan to help you achieve the goal.
Posted: Wed May 02, 2012 07:28 am Post Subject:
What PP said. The underlying difference between the two policies is the differentiation between the type of coverage and how long it remains with you. Term life insurance is cheaper because it only lasts for a certain number of years, and the chances of you dying in that time period are much lesser. Whole life insurance will last you for the rest of your life (though a few policies have a cap at 85 years of age). Check out quotes to see how much this will cost you, both in short and long run. What you should buy will depend on what you need and your overall financial goals and plans and how life insurance fits in it.
Pat Cassidy
Disclaimer: I work for AccuQuote and this is my personal opinion.
Posted: Wed May 02, 2012 11:45 am Post Subject:
Whole life insurance will last you for the rest of your life (though a few policies have a cap at 85 years of age).
A policy that ends at age 85 would be an ENDOWMENT, and although it is a form of Whole Life insurance, is really something used for a very different purpose.
Pat Cassidy is not offering any helpful advice, he/she is merely a call center ordertaker not an experienced agent.
Work with an experienced agent who will do a proper financial needs analysis and help you identify the type and amount of life insurance needed for your particular situation.
Posted: Mon May 07, 2012 11:12 am Post Subject:
Thanks for sharing your thoughts. Life insurance coverage is incredibly important, should something go wrong. You could already qualify for life insurance, for free, in some situations. [Link removed - Admin]
Thanks and best regards.
Posted: Mon May 07, 2012 02:33 pm Post Subject:
You could already qualify for life insurance, for free
There is no such thing as "free" life insurance. You might not be paying for it, but someone else -- such as your employer -- is.
Posted: Tue Apr 24, 2012 01:31 pm Post Subject: Difference between term & whoe life insurance
A term life insurance provides coverage for a specified time period, say for 10, 15, 20 or 30 years. It doesn't accumulate cash value with time. The premiums are more affordable than whole life policies.
A whole life insurance provides coverage for your entire lifetime. It has a cash value, which grows with time and one can borrow against the accumulated cash value.
This is the basic difference between the two. You can even check out the below mentioned link to understand them in a better way.
http://www.ampminsure.org/life.html
Posted: Thu Apr 26, 2012 02:32 am Post Subject:
Term life insurance is a good choice for people who are on a tight budget since it offers a lot of coverage for a relatively lower monthly premium. Whole life insurance, on the otherhand, is perfect for those who can afford a higher premium and want to avail of guaranteed death benefits and cash values.
Posted: Mon Apr 30, 2012 01:35 am Post Subject:
honestly, i was also confused with term life insurance and whole life insurance. :) Glad I came across this one. So, what is more practical to buy?
Posted: Tue May 01, 2012 06:33 am Post Subject:
So, what is more practical to buy?
No one here can answer that question for you without first doing an analysis of your present situation, your future needs, and your ability to work toward meeting those future needs.
Someone could say, "Oh, you have to buy term life, because it's the cheapest." And 20 years down the road you might regret the fact that you could have obtained a Whole Life policy that would have been more costly 20 years ago, but will be significantly less costly now and into the remaining years of your life.
You need to work with an agent face-to-face in order to properly determine your needs and objectives, and then to create the plan to help you achieve the goal.
Posted: Wed May 02, 2012 07:28 am Post Subject:
What PP said. The underlying difference between the two policies is the differentiation between the type of coverage and how long it remains with you. Term life insurance is cheaper because it only lasts for a certain number of years, and the chances of you dying in that time period are much lesser. Whole life insurance will last you for the rest of your life (though a few policies have a cap at 85 years of age). Check out quotes to see how much this will cost you, both in short and long run. What you should buy will depend on what you need and your overall financial goals and plans and how life insurance fits in it.
Pat Cassidy
Disclaimer: I work for AccuQuote and this is my personal opinion.
Posted: Wed May 02, 2012 11:45 am Post Subject:
Whole life insurance will last you for the rest of your life (though a few policies have a cap at 85 years of age).
A policy that ends at age 85 would be an ENDOWMENT, and although it is a form of Whole Life insurance, is really something used for a very different purpose.
Pat Cassidy is not offering any helpful advice, he/she is merely a call center ordertaker not an experienced agent.
Work with an experienced agent who will do a proper financial needs analysis and help you identify the type and amount of life insurance needed for your particular situation.
Posted: Mon May 07, 2012 11:12 am Post Subject:
Thanks for sharing your thoughts. Life insurance coverage is incredibly important, should something go wrong. You could already qualify for life insurance, for free, in some situations. [Link removed - Admin]
Thanks and best regards.
Posted: Mon May 07, 2012 02:33 pm Post Subject:
You could already qualify for life insurance, for free
There is no such thing as "free" life insurance. You might not be paying for it, but someone else -- such as your employer -- is.
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