Which Life Insurance Is Best?

Life insurance usually comes in two major types. Some of us usually wonder which one is the best life insurance, how to stop ourselves from making a mistake of choosing the wrong deal. Let us present you two of those for you to compare and see for yourself.

Term Life Insurance

The Pros:

  • It's cheap. Term life is the most affordable life insurance. Its reasonable rates give people a chance to purchase policies with larger face values than they could otherwise afford.
  • It's easy to buy. The most important thing here is to figure out how much you need and how much time u will be needing it ... then shop around a bit to find a good rate.
  • It covers a temporary need. Keep in mind, best life insurance is meant to provide for your dependants as well. So think about them too.

The Cons

  • It expires. There's a dark side to the expiration date of term insurance. The older you are, the stricter the term market is going to be to you: If you're not in good health, you might not be eligible to apply for coverage at all.
  • If you cancel or outlive your policy - you get nothing in return. That means you will have paid thousands of dollars for a policy you didn't ever get to use.

Whole Life Insurance

The Pros:

  • It's permanent. Provided you pay your premiums, year in and year out, whole life policies never expire. Since death is one of the inevitabilities of life, with a whole life policy, you know you'll have something to leave behind for your heirs.
  • It's forced savings. Whole life policies don't come cheap, but that's because whole life policies build up a savings account that grows tax-deferred, and which can be tapped in retirement.

The Cons:

  • It's expensive. Not everyone will be able to afford the premiums required to obtain the amount of coverage they need. People collect their pennies for the first couple of years of a whole life policy only to ultimately find they can no longer afford the bill.
  • Shopping around for the right policy will make your head spin. Whole life policies are very confusing and often sold based on attractive illustrations for how much the company intends to pay in dividends over the lifetime of the policy.

The rest you need to decide for yourself. Make sure you choose the right insurance plan.