Term Insurance vs Whole Life Insurance

Life insurance is continuing to gain popularity owing to the security it offers. With a life insurance policy, you get the promise of financial stability for your loved ones, even when you aren't around.

The life insurance market is replete with many options, two of the most common being Term Insurance and Whole Life Insurance.

It's important to know the difference between these two types of life insurance policies, so you can make an informed decision and choose the policy that fits YOUR needs the best.

Let's have a look!
 

Term Insurance

A term insurance plan is one of the most simple and affordable ways you can guarantee financial security to your loved ones even in your absence. All you need to do is pay the premiums on time and your family will receive a fixed sum of money if you, unfortunately, pass away during the policy duration.

Important: Term insurance is a pure risk cover. If you survive the policy duration, you will not receive any benefits.
 

Whole Life Insurance

A whole life insurance policy, as the name suggests, covers you for your entire life (till you are 99-100 years old). It offers guaranteed returns in two ways.

• If you pass away during the policy term, your family receives the cover amount as the death benefit.
• If you survive the policy term, you receive the cover amount as the maturity benefit.

This plan is a good choice if you want to create a financial safety net for your family and leave behind a legacy for them.

Now that you know how both Insurance policy works, we can dig deeper into each policy and see how they differ. It will help you decide which plan is the best choice for you and your loved ones.
 

Differences: Whole Life Insurance vs Term Insurance

Conclusion

After reading the above article, we hope that you are now able to differentiate and decide which Insurance policy would best fit your needs. We recommend that you make a wise decision in choosing the right policy for you and your loved ones.