At the age of 10, my family went through a rough financial patch. My mother would leave no electrical outlets plugged and would close the faucets so tightly, I struggle to use it myself. I didn’t understand back then why we had to put effort into this, until I turned 15.
In my teen years, I realized how important money is as my sister and I stood on the sidewalk, beside our smoking car. Back then, I had this understanding of saving up a lot of money to set aside for rainy days such as this. I thought it would be as easy as dropping coins in a piggy bank, which, by the way, is how I started my savings.
Now I am at my early 20s and about to leave the pre-adulthood nest. Transitioning from being carefree to a life of responsibility had me looking into Life Insurance plans. I gathered knowledge about these choices, enough for me to be left with a dilemma: Should I choose a term life or whole life policy? For those who are new to this, I’ll briefly discuss both choices.
WHOLE LIFE POLICY
As someone who may have a bit of difficulty in understanding certain terms in this sort of topic, I’ll try to explain the two choices simply. The whole life policy will provide a permanent death benefit, or simply to say, a certain amount of money, for the life of the insured person. This means that if the insured person were to pass away, their chosen beneficiary persons, would gain a certain amount of money.
This “deal” attracts a lot of people as the thought of losing a breadwinner’s income would put the whole family into financial debts. Unpredictable occurrences of tragedies would leave their spouse or family with a financial problem, on top of their grieving. In short, this particular insurance policy gives financial assurance to the ones who are left behind by the insured.
TERM LIFE POLICY
On the other hand, the Term life policy will provide protection for a specific and limited amount of years. This offers a lower premium compared to the whole life policy, attracting those who are single, and have no one to worry of, if and when they were to be met with their imminent death.
This attracts people who wants to be more of in control with their insurance. For example, people who would choose this policy may change their choice after completing the first one, giving more benefits for the next term. With this, they have the choice to either upgrade or lower their policy choice in accordance to their preference.
Both whole life and term life policies have pros and cons and picking one over the other would base solely on what plans you have. If your decision leans more towards picking a term life policy, Ladder life reviews might aid you with this. The time for getting an insurance is now. Make sure you choose the insurance that is most appropriate for you now.
