Difference Between Whole Life Insurance and Term Life Insurance
You may buy any type of insurance policy but the term for which it provides the cover is an important aspect. The most popular insurance policies have term ranging between 0 to 30 years. Whole life and term life are two types of insurance policies with different terms. If you are not aware of the differences between them then you can read the following points of differences between them.
- In case of term life Insurance you get life cover and not investment benefit while in case of Whole life insurance you get both, the life cover and investment benefits. You get the benefits are reaped in the form of stocks and bonds after you have survived the policy term. If you do not survive then your beneficiaries get the benefits.
- Term life insurance provides only death benefits to the beneficiaries and people buy these policies to secure their families if they die while whole term insurance is a good long term investment and even you can reap the benefits.
- There are not many types of term life policies while there are three main categories of while life policy. These are traditional, universal and variable whole life term policy.
- In case of term life policy you need to pay the premium for the term and rest is taken care of by the insurance company. You can opt for monthly, quarterly, 6 monthly or even annual premium payment options. There is not much flexibility in terms of additional features.
- You can get loan on behalf of your whole life insurance policy while this is not possible in case of term life insurance.
Whole life policy provides many additional features. You can opt to get many other benefits like accidental benefits, disability benefits etc.