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WHOLE LIFE INSURANCE vs TERM INSURANCE
This is the main argument in most of get-togethers. If both these are defined it can help to decide the option. WHOLE LIFE INSURANCE OR TERM INSURANCE easily.
TERM INSURANCE = coverage for risk of death. As the age goes up the mortality risk is higher. At 60 the cost may be prohibitive. But as the cost is low and the income is low the whole life is covered at low cost.
It is very easy to compare the companies. So every company gives a very competitive term insurance quote . The commissions on the term insurance are also low.
WHOLE LIFE INSURANCE =the payments are spread over whole life. More payment in early life and less in the later age. The commissions on the whole life insurance are high. Since the incentive is high the agents try to promote whole life insurance. It is also sold as investment product .Depending upon the policy you may get dividends. You can withdraw or buy more
Insurance by this dividend. It is form of a forced savings. also it can help in the tax planning. Most of the life policies come with additional features. It makes it very difficult to compare the two policies.
I have always preferred to buy term insurance.
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