Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Factors to Compare Term Vs Whole Life Insurance

By Elissa Joyce Subscribe to RSS | December 5th 2011 | Views:
loading
 
  



It is often the case with people that they are confused between the two of term and whole life insurance. I maintain that none is superior or inferior. Taking the insurances as these developed historically must be useful for one to decide between term vs whole life insurance.

What These Insurances Exactly Mean?

Term life insurance is the original form of insurance in which you pay premiums at a regular interval of one year (mostly) and depending on the amount of this premium, your nominees get the death benefit in case of your accidental death during the specified term. The terms may vary from one year to as long as 30 years. But no one practically buys insurance for the term of one year, for the obvious reason that no one expects to die in just one year (and in case of any already existing critical medical condition, this insurance cannot be bought). Practically it is the terms of 10, 20, or 30 years that people buy term insurance for.

You don’t get anything at the end of the term, though you go on paying the premium every year till the end of the term. It thus is valuable in order to insure that your liabilities regarding your dependents are met and you don’t default on any mortgage loan etc. you can go for it considering the education of your children and care of your parent or anyone close to you but having no source of income of his/her own. It all depends on who you declare (in writing) your nominee(s). The amount of this benefit is dependent on the amount of the premiums and the length of the term.

Whole life insurance, on the other hand, is not limited to any term. It covers the insured for whole his/her life. You can assure by buying one such insurance policy that you leave after you some amount against what you keep paying every year of your life as premiums. The death benefit (the words may feel odd as benefit is attached with death, but it is the term used in insurance sector) is high with whole life insurance, but so are the premiums as well. It is the expense factor that people mostly go for term life insurance.

The Considerations Ahead

People often think their premiums go for nothing with the term insurance policies, but they are essentially wrong. It is a great source of mental peace for decades of the term. Though people go on buying insurance policies, the insurance companies have been coming up with new offers. More offers come with whole life insurance, though. There are options of making changes in certain whole life insurance policies after once you have bought it. You can make changes in its premiums and nominees etc. Moreover there are plans that offer you withdrawal of your accumulated cash amount during your life time. In this case you lose only the share of it, already paid as dividends to the stake holders, but you get a certain interest on your accumulated amount.

A Few Tips

One approach is to have term life insurance in your early years of life, when you may find it more affordable. It should be a long term policy so as to fetch a good amount to your dependents in case of your accidental death. Then at a mature age you may go for a whole life insurance policy.

By the age of, say, retirement from job, people have enough money amassed with them. So they can easily manage for the premiums and they can live taking their responsibilities with their savings of long years and retirement benefits. The premiums of whole life insurance will further assure you that you leave a pretty cool amount for your dependents after you.

So taking these considerations decide which one suits you. For real comparison between the two, you can easily look for free quotes on internet. You can look for one American general life insurance company and ask for the quotes for various plans. Before finalizing the deal, please do visit and get quotes from multiple companies to have a competitive benefit. As it is a long term investment, take your time exploring various options.

Elissa Joyce - About Author:
What you come across first while comparing term vs whole life insurance is that the latter is expensive as compared to the former. But the whole life insurance policies are now available with many flexible options like American general life insurance company making them even more lucrative.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/business-articles/factors-to-compare-term-vs-whole-life-insurance.htm

Related Business Articles Subscribe to RSS

Simple Tips to extend the life of your car
Published by Nicolevickers on April 14th 2012 | Business
Proper car maintenance involves hard work and perseverance. In order for your car to function well, ...
 
Professional liability insurance
Published by Francesca on December 1st 2011 | Business
More and more professionals and companies decide to protect themselves by insuring themselves with a...
 
70-680 - the High Quality in Your life
Published by Hanliu1003@hotmail.com on December 7th 2011 | Business
With increasing importance of information technology in nearly all industries and organizations, a C...
 
IBS imbalance your life with number of troubles
Published by Healthprogram on June 14th 2012 | Business

Irritable bowel syndrome (IBS) is a chronic disorder leads to cramping, changes in bowel movemen...
 
70-680 - the High Quality in Your life So Great
Published by Water123 on December 24th 2011 | Business
With increasing importance of information technology in nearly all industries and organizations, a C...
 
Zadroga attorney is a life savior for the 9/11 attack victims
Published by Jennifer Weinstein on December 12th 2011 | Business
Zadroga Attorney plays a very important role in helping the sufferers of 9/11 attack in getting a re...
 
Sunny flats – a perfect way of living a blissful life
Published by Deepti on March 21st 2012 | Business
Mohali has witnessed outstanding growth and development in the last couple of years. The place with ...
 
Europe wide insurance for motorbike breakdown cover
Published by Tom Green on May 16th 2012 | Business
This article is about the different types of breakdown cover available across Europe for Motorcyclis...
 
Factors involved in deciding the cost of long term care insurance
Published by Ashish Pandey on March 28th 2012 | Business
You need to keep in mind some factors in order to decide the cost of long term care insurance. Have ...
 
De-cluttering life, one storage idea at a time
Published by Simon Dcruz on March 1st 2012 | Business
Self storage solutions are what come to mind in situations like these. One can rent as much space as...
 
Light up your life with the lights of emotion.
Published by Godawariwebsolutions on December 2nd 2011 | Business
We always dream of lighting the world but it may seem to be a distant thought in this world of high ...
 
Go to a measurable life that will be the reason of your success one day
Published by Dion Sivla on April 4th 2012 | Business
They are the one who actually invented the measurement scoops which will actually helps the consumer...
 
Get hassle free approach to grab best auto insurance deals
Published by Mike Stover on December 29th 2011 | Business
Searching and then finalizing the best auto insurance is a tough and big job. You need to be very ca...
 
Connection coaching for better quality of life
Published by Ashish Pandey on June 7th 2012 | Business
Connection Coaching can offer you a good life with constant evolution. It can be great for your over...
 
Go Karting Birmingham is a great way to have the ride of your life
Published by Mary Porter on June 27th 2012 | Business
Have you put Go Karting Birmingham down on your list of things to do this year? If not, what’s st...
 
Aerocity Mohali- a perfect destiny for a magnificent life
Published by Deepti on March 23rd 2012 | Business
The task of buying and selling property in tricity can be nail biting. The urban part of Mohali is a...
 
The best site for Idaho auto insurance
Published by Auto Insurances on January 16th 2012 | Business
Although Idaho is one of the least crowded states in the United States, it does not mean that living...
 
Understanding difference between extended Lexus Car Warranty and insurance
Published by Ashish Pandey on February 8th 2012 | Business
By buying the Lexus car warranty from reliable sources like www.lexuscarwarranty.co.uk you can alway...
 
What can be done to enhance your camera battery life?
Published by Michael Thompson on June 18th 2012 | Business
As we are aware of the various electronic devices that use batteries as their source of power, so do...
 
Ask a Product Design Consultancy to bring your dreams to life
Published by James Blee on June 19th 2012 | Business
Some of the greatest inventions have begun life with a simple flash of inspiration. It’s what you ...