Whole Life or Term Monumental Life Insurance?

Thinking about your own death isn’t a very nice thought, but there comes a time when you must force yourself to do it. A monumental life insurance policy is essential nowadays, even though these days people have less money to spend and think that life insurance is a luxury, this couldn’t be more wrong. Since the majority of us have less to spend at the moment, it’s even more important that people get a monumental life insurance policy so that when they pass away, their family will still be fine financially. In my opinion, life insurance is nearly a necessity. So, now that you’ve decided that you need life insurance, the next question will probably be something along the lines of “What type of policy should I get?”. There’s a wide variety of policies available on the market to consumers, but the two main types of policies are : Term life insurance and whole life insurance. I’m going to compare these two types of life insurance so that you can get an idea about which one is best for your own needs.

Cash Value – With term life insurance, even if you’ve had it for a decade and then you decided that you want to stop paying for it, you wont get anything in return. In the case of a whole life policy, the situation would be completely different. If you’ve a whole life insurance policy, and lets say for example you lost your job and couldn’t afford to continue paying for it, you can simply cash out on the policy and get a lump sum. Because of this, I’d recommend getting this type of life cover if you’re a little bit worried whether you’d be able to pay for your policy until you or a loved one passes away.

Cost – You might be able to have a guess which policy is more expensive than the other. Yes, it’s whole life insurance! It’s pretty obvious why it’s more expensive, it’s because the person insured can get out of their policy and get a payment almost instantly if they wish to do so. Term life would be good though if the person is finding it difficult to acquire any type of monumental life insurance. It’s better than nothing, isn’t it?

Life Expectancy – In regards to term life insurance, it’s a very good idea to find out your (or the person being insured) life expectancy. Many people go to the trouble of getting a thorough medical exam. It might cost a decent amount of money to get done, but in the long run it could save you and your family a lot of money. So, why is it so important to get this done? Well the answer is quite simple, if you are planning on getting a term life insurance policy, you’ll need to decide how long you want the policy for. If you get it for 5 years, but then want to extend it to 10 years, you’ll be left with a hefty increase in the cost of your insurance policy – not good! Thankfully, with a whole life insurance policy, it’s a bit easier to deal with since you don’t need to worry about any of this.