There’s no better time than now to start thinking about life insurance. Because if the unexpected happens like an illness or an accident, you don’t want to leave your family under financial burdens – particularly if you’re the bread winner. Before getting a life insurance policy, you need to know that there are two main types of policies on the market: whole life and term life insurance. Both have their own pros and cons, so the one you select will completely depend on your situation.
Here are the differences:
Term life insurance: Term life insurance lasts for a short term. This kind of insurance may be best if you only want to carry insurance for a certain period of time such as until you children become adults and can support themselves. Term policies are cheaper, however premiums can go up after a certain amount of time depending on the policy.
Whole life policies: Whole life policies will last you your entire life. They build up cash value over time as long as you’re paying the premiums. The only thing about whole life insurance is that they have more expensive premiums.
Making the decision sooner rather than later is always best. Knowing the difference in policies will help you to make an informed choice.