The game of life is absolutely buzzing. One moment youâ€™re deciding on what stationery you want to buy for the first day of school, and a few years later, youâ€™re making a very adult-like choice: Term vs. Whole Life Insurance.
The circle of life flows around very fast and we need to brace for both good times and bad. Life insurance is a policy to safeguard you from bad times. Death is the inevitable end, and it is nothing less than wise to prepare for it.
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Letâ€™s say that you kick the bucket sometime in the future (because, the inevitable). Whoâ€™ll be there to take care of your family? Your heirlooms, assets and creditworthiness wonâ€™t pay the bills in your absence. When you leave the universe, you need to make sure your family is taken care of.
The legal definition of insurance is all about many people pooling up resources to distribute huge risks in small fractions. It is a completely legitimate idea and millions of families still have a roof over their head because their sole-earner got an insurance policy.
Think about the last gift you can provide to your family. Wouldnâ€™t it be awesome if you could provide them with the financial support thatâ€™ll ensure their good welfare?
No, we are not talking about going to Don Corleone and asking him to be The Godfather to your children. Weâ€™re talking something more assuring and profitableâ€”an insurance policy thatâ€™ll guard your family by providing financial support, thanks to the policy you picked out.
Whatever might be your opinion for other things out there, donâ€™t fall for the â€˜life insurance is a shamâ€™ mirage. Your children could get through college, your partner could be living a peaceful life and youâ€™ll be at peace from the moment youâ€™ll sign on those insurance papers knowing they are protected.Â Life insurance is buying peace of mind.
In most cases, we get lost in the world of life insurance policiesâ€”every other policy coming up with new names, new perks, BOGO offers and what not. Barring all that aside, insurance policies are pretty easy to pick out.
When it comes to life insurance policies and you getting yourself insured, you have two competitors ready to win your trust: term vs. whole life insurance. Now it is extremely crucial to understand what the difference between term and whole life insurance is before making a move.
When you are looking at both the options, do remember these two basic points:
While many people believe that whole life insurance is the best bet, it can be quite costly. While the time factor plays a spoilsport for term life insurance, it is a commendable choice in many instances and also quite cost-effective.
So we are going to begin the term vs. whole life insurance debate in order to figure out whatâ€™s the premium choice between these two.
Yes, these two types of life insurance are what you are going to decide between. What you have to do is consider a few factors before deciding on what insurance policy do you want:
Here are ten factors for you to consider before you make a choice between term vs. whole life insurance:
1. Your current age is the best factor to decide on a life insurance policy and the best place to self-introspect.
2. Howâ€™s your health? Itâ€™s life insurance policy we are talking about and your health would be a primary catalyst to the cost of the policy
3. What are your familyâ€™s financial needs? Make a list of all financial expenses that will turn up in both near future and far.
4. What about that one last rite? Your funeral and death plans will cost a lot of money and you donâ€™t want to burden them on your folkâ€™s right after you leave.
5. How old are the kids? Are your children going to pay for college on their own? Thatâ€™s not a good idea and student debt is an epidemic. If theyâ€™re through college, decide on what youâ€™ll leave for them.
6. Howâ€™s your familyâ€™s health? Would they be able to pay for health concerns in the long run? Tragedy and ailments might strike at any given time and you have to brace your family for it.
7. Your debt and mortgage. Life goes on, people come and go, but debt stays forever. Your insurance policy should be enough to cover the debt.
8. The retirement planâ€“ your retirement strategy will have a direct impact on your life insurance policy. Look over your retirement plan and in case you donâ€™t know how to, Blooom can do it for free.
9. Your familyâ€™s future needs should take the front seat. Donâ€™t forget your childrenâ€™s college education; you donâ€™t want to hang them to dry.
10. What do you feel about the term policy? Are you picking a long enough term to meet your families needs?
Take note of these questions, write your answers down and youâ€™ll have a good roadmap to choose your perfect insurance policy.
Now letâ€™s get back to the real debate of term vs. whole life insurance. Let us compare both the types and then you can figure out whatâ€™s your way to go. Weâ€™ll also tell you about two life insurance connoisseurs from who you can request a quote to clear things out.
As the name suggests, Term Life Insurance is where you are insured for a fixed time period. Now this time period goes up to 20 to 30 years. The term life insurance policy provides death benefits in case the insured person dies in that term.
Unlike a whole life insurance policy, which has huge premium amounts, the term insurance policy is cheaper and has a fixed premium amount. But thereâ€™s a catchâ€”the policy has an expiration date, and once expired, one cannot reap benefits of term life insurance policy.
The risk a term life insurance policy carries is that you wonâ€™t get anything when it expires if youâ€™re still alive. The premium you were paying wonâ€™t be returned, your insurance policy would expire (you can extend it, no doubt) and youâ€™d be policy-less.
But thatâ€™s better than dying without a life insurance policy at all. Your family would be stuck in the middle of a financial turmoil and thatâ€™s not what you want to happen. Term life insurance might have an expiry date, but it gives you the much needed peace of mind at a reasonable cost.
Leap Life is not just another term life insurance company. In fact, it is the only company in the USA that offers online life insurance with multiple carriers on its back. Take insurance shopping to the next level, think no more than Leap Life.
A pioneer in getting you the best insurance quote, Leap Life will give you a term life policy of your dreams thatâ€™ll be fit to your needs.
Crafting your insurance policy couldnâ€™t have been easier. Leap Life has this needs calculator which asks you all basic questions and voila! Your policy is right there in your hands. You can calculate how much amount you have to save for future needs.
Leap Life would give you tons of options from which you can take your pick. Itâ€™s the best place to compare your choices by requesting quotes. Give Leap Life a shot today!
Term life insurance policies are all about selling whatever fits in their preset molds. But itâ€™s not that tough to change the policy, and itâ€™s a customerâ€™s market. Ladder is one such life insurance expert that provides life insurance tailor-made to your needs.
Weâ€™re not talking about unnecessary fees and baseless pushy-sales; Ladder wants you to have whatâ€™s best for you. Sporting a coverage amount calculator, all you got to do is visit Ladderâ€™s website and select your desired coverage amount.
Not only would you be provided with detailed estimates that you can go for, but you can also tweak the policy according to your convenience. Letâ€™s put the term vs. whole life insurance debate aside for a moment, Life insurance is an intimate affair you want whatâ€™s best for your family.
The best way to get it is by going for a term life insurance that can be twisted to your convenience. Even if you want to make some changes later, Ladder would be more than happy to comply. That is why our best pick for term life insurance is Ladder Life Insurance.
This might sound like the simplest form of life insurance policy, but whole life insurance is way more complex. Yes, it is a policy that insures you for life and the worst thing that can happen is that you live forever. But thereâ€™s more to read than whatâ€™s written in the lines.
It is the policyâ€™s cash value that matters when it comes to whole life insurance. This is not just an â€˜all or nothingâ€™ policy, as whole life insurance keeps on growing every passing year. It is an investment because the cash value grows nice and easy.
The best part is that you wonâ€™t have to pay taxes on this policy. The income for policyâ€™s cash value (which keeps on escalating with due course of time) is tax-deferred. So not only are you growing money with afflux of time, you donâ€™t have to pay taxes on gains.
But a whole life insurance policy comes with twists and turns. For a start, it costs more than a term life insurance policy. If anything, it is good for the insured party, as s/heâ€™ll be receiving insurance amount for sure. With the rising cash value, the policy will bear results in the long run.
We might or might not be able to solve the term vs. whole life insurance debate, but MassMutual life insurance surely tips the scales in whole life insuranceâ€™s favor. Whole life insurance policies are all about ones that offer the best cash policy value and MassMutual wins that race.
MassMutual life insurance policy also offers a distinct source of income i.e. policy dividends. You can pocket annual cash dividends which increases the policy cover. You can easily apply for whole life insurance online and your policy would be in effect in no time.
Choose an insurance fit for your needs as they also offer retirement insurance, disability insurance and college funds assistance for your kids. Give a visit to MassMutualâ€™s website and learn more about their policy terms.
Life insurance involves a hefty chunk of money, money that you will gather for your familyâ€™s future well-being. Donâ€™t just invest it in that one which has a better salesman, compare both options and find the best way to differentiate between the two.
Whichever policy offers you better benefits, benefits that suit you, go for it. But keep in mind that in term vs. whole life insurance fiasco, there are more than two simple factors in play.