When you make up your mind to take a life insurance policy, you may be confused as to which one to choose from the array of insurance policies. While there will be a lot of suggestions, choosing the term or whole life insurance policy depends on your goal, age, timeline and future plans.
Term insurance policy provides cover only up to a specific period of time and it cannot be withdrawn at the date of maturity. It will benefit the dependents only after the death of the insured or any other unfortunate events. As the premiums on the term policy tend to increase with time, it is recommended to take it while you are young.
Whole life insurance policy provides cover until the death of the insured. It can be even started after you turn 40. Though the initial premium may be higher, it is constant till the end of the policy, hence providing a cash value as you grow old.
Term plan is best if you have a serious illness and you want to provide huge monetary benefits to your dependents. Whole life insurance is best for you if you start later stage of your life and it could be cheaper and provides cover till the end of your life.