If it is your first time to purchase a life insurance, it is just proper that you do a little research as to what plan should you get. The main question here is if you’ll go for a whole life insurance or would you just settle for a term life insurance? To make a well-informed decision, continue reading this article as we’re going to discuss the differences between the two.
Whole life can also be identified as “permanent life insurance coverage”. Insurance people sometimes call it “Straight Life” or “Continuous Premium”. With this type of policy, you can ensure yourself these three major benefits: fixed premium, guaranteed death benefit, and guaranteed cash value.
For the term insurance, as the name suggests, you can only rely on its benefits for a specific period of time. This is typically 1 year (Annual Renewable Term) or 5RT, 10RT, 20RT and 30RT. This type of policy is recommended to those who have a low budget. As for those who are expecting for a plan to build some cash value, this isn’t the policy for you.