Whole Life Insurance vs Term Life Insurance
It goes without saying that Life Insurance is an important policy worth having. In fact, some mortgage lenders require you to have life insurance when purchasing property. But with different policies available, offering different benefits, it can be overwhelming to know whether to opt for whole life insurance or term life insurance to best suit your needs.
Here at Financial Foresight we have years of experience advising individuals on various life insurance policies. Below we have provided an overview of two popular types of policies to help you get a better understanding of what might work for you.
Whole Life Insurance
Whole Life Insurance tends to be a more expensive policy; however, you will find that this type of policy can be structured, so premiums do not need to be paid beyond a certain age e.g. 85.
It offers the policy owner longer protection and it will pay out in the event of your death if you have kept up with payments.
Term Life Insurance
Term Life Insurance has a limited coverage period such as; 5 or 15 years. Once the policy term is up it is up to the policy owner to renew. This policy will only pay out if the policy owner’s death occurs within the policy terms agreement.
Term Life Insurance has no cash value – its only purpose is to ensure against the loss of life.
When deciding on a life insurance policy there are various factors worth considering such as; age, family, funeral plans, children’s education, debts, etc. This may seem daunting but a knowledge financial advisor can help you make sense of it all!
If you would like further information on the above life insurance policies, feel free to get in touch! Book a free, no obligation life insurance consultation with our financial advisors today. We are happy to help!