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Which Type of Coverage is Right for You?

When it comes to purchasing a life insurance policy, you basically have two choices - a permanent or term option. Even though there's very limited options, choosing which type of plan can be an excruciating struggle for some consumers. With affordable term life insurance policies in abundance, many experts believe it is clearly the best option. However, there are also those that like the security that a whole counterpart can provide. If you're having trouble making the decision, check out this helpful guide concerning the pro's and con's of each:

Whole Life is in it for the Long Haul

  • Pro - Perhaps the biggest advantage of this product is knowing that your policy will always pay out to your beneficiaries, assuming that it remains in good standing. You could live to be over 100 years old and your loved ones would still receive the benefits. Rather or not your beneficiaries would actually need those benefits at that point is another story though.
  • Con - Of course, by guaranteeing that your plan will pay out upon your death, you'll have to constantly pay premiums on it. While permanent plans can act as an investment vehicle as well, it may not necessarily be for the investments you'd like to make.
  • Con - In almost every situation, this is more expensive than comparable temporary offerings. Even if you take out your policy when you're very young, it will never be mistaken for affordable temporary protection.

Term Offers Essential Coverage at a Low Price

  • Pro - The biggest advantage of this coverage is almost certainly it's low cost. Even if you're not in perfect health, there are plenty of companies that can sell you an affordable option. If you're on a tight budget, it is flexible enough that you can still get great rates by purchasing a smaller offering that lasts for a shorter period of time.
  • Pro - Another thing to keep in mind is that it boasts an incredibly easy application process and just about anyone can get approved in some shape or form. While almost every type of permanent counterpart involves a litany of invasive tests and questions, there are actually insurers out there that don't even require a medical exam!
  • Con - The only real negative aspect is that it won't pay out benefits if you do not die within your covered period. However, you also wouldn't be paying your premiums anymore at this point anyways. These days, most companies allow customers to renew these policies at a discounted rate or even sign up for one that boasts a return of premiums if unused!