What Type of Life Insurance Should You Get

Investing in a Life Insurance is one of the basic foundations in achieving financial stability. It frees you of the worry about the future of your family if anything should happen to you. When choosing an insurance it is essential that you understand what type of insurance you need and and their advantages and disadvantages.

Although there are a lot of people who avail on Life insurance products, there are some who have no idea what kind of insurance will fit their needs. The two basic types of Life Insurance is the Term and Whole Life Insurance. Each of these insurance products has their own benefits which will cater to your needs.


Term Life Insurance is a policy that is effective for a specific period. Once the term of the policy expires, it is up to the policy owner to renew it or terminate the policy. Term insurance are more affordable to whole life insurance since the policy owner doesn't receive anything unless he or she passes away. Although there are riders that will allow the policy owner to claim the face value of the insurance even without his or her demise, these benefits will also add to the cost of the Life Insurance policy. Another aspect to consider about Term Life Insurance is the premium. Premiums for Term Life Insurance will exponentially increase as your age increases.

There are various terms to choose from on Term Life Insurance. A yearly renewable term insurance is more affordable compared to a 10 year term insurance since the annual premium of the yearly insurance increases every year, while the premium for the 10 year term is fixed for 10 year period.

Term Life Insurance are perfect for people who have a limited budget and are looking to secure their family at a minimal cost. The major drawback on term insurance is it doesn't have any cash value. If a person doesn't pass away during the period of his Term Insurance Policy, he or she doesn't receive anything from the insurance company.

Whole Life insurance has both a life insurance and investment component. Whole life insurance have fixed premiums that can be paid a single time or spread at a specific period. The life insurance component of the whole life insurance will cover the insured for the rest of his or her life. The investment component of whole life insurance will increase as time passes and will have a cash value that can be withdrawn, or loaned upon.

Premiums for whole life insurance are more expensive compared to their Term Insurance counterparts since these are basically two products that are merged into one. The premiums are divided between the life insurance and investment. Whole life insurance are ideal for people who are interested securing their dependents while having the option of being able to grow their money and withdraw it in the future

If your priority is to have a large insurance coverage at minimal cost then go for term insurance. If your looking for an insurance coupled with investment component, life insurance coverage for the rest of your life and paying for your premiums for a specific time, then  whole life insurance will fit your need. Whichever insurance product you choose, both product will provide security for your family in case something happens to you.