Both the whole life insurance and term life insurance policies have some advantages and disadvantages associated with them. Depending upon your financial goal and financial situation you decide which type of life insurance policy to choose.
Problem: I am a 27 year old person who has recently joined a new job and earning decent salary. Moreover,Guest Posting recently I got married. Now, I am thinking seriously about purchasing a good life insurance policy. Can you tell me which policy would be best for me, term life insurance or a whole life insurance?
Solution: First of all, thanks a lot for seeking my views in this regard. It is indeed a good thing that you are thinking seriously to purchase a life insurance policy. And, you are absolutely right that mainly there are two broad types of life insurance policies – whole life insurance and the term life insurance. Here I am discussing the pros and cons of these three types of policies so that you can opt the best life insurance.
Whole life insurance policy
This is permanent life insurance policy. Its life time 美国留学生保险 validity remains as long as you pay the premiums. With whole life insurance policy in place, you can be rest assured that you will leave behind something for your successors. The whole life insurance policies are like forced savings. It builds up a lump sum savings account that you can use only after you retire. However, if you are not very disciplined financially, you should think twice before purchasing whole life insurance policy as you have to pay premiums for a long period of time. Moreover, the whole life insurance policies are regarded as wonderful real-estate planning tool. Though the real estate bears a heavy burden of taxes, the death benefit associated with whole life insurance policies is completely tax free.
One major drawback of whole life insurance policy is that it is very expensive. Not all of you can afford to pay the high premiums of whole life insurance policy so as to obtain good life coverage. Another problem associated with whole life insurance policy is that it has been seen quite often that many of you manage this policy quite well in the initial years but thereafter falter. Moreover, administrative fees and other fees associated with whole life insurance policies comparatively higher than other investment avenues.