Insurance Policies

[iswansky]

Hi just need a quick opinion on this. Would it be better for me to purchase a term life insurance plan or a whole life insurance plan? Whole life bring benefits but i felt that term life insurance provides better coverage. Any suggestions?

Thank you!

 

[oceanicmanta]

it depends on what u want, protection, savings ?

whole life is a very long term commitment and cost more so more be a financial burden. it may take 20yrs or more to "breakeven"

pure protection just go for term, then save up the difference, learn to invest

 

[dendii]

Depending on ones preference.

Term only
Many forumers prefer doing this way. Save the premium difference and invest. In the long run, returns should more than cover for any critical events that may happen after your liabilities are gone (or most of it at least).

Whole life only
Coverage will definitely not be sufficient. Period.

Hybrid (term + whole life)
My preference and recommendation. Why?

Whole life gives you guaranteed coverage, whether on multiplier or not, for your whole life. Unfortunate events can happen at any point, but as we get older risk becomes higher. My opinion is if it happens during a bad economical time, chances of me taking out my investment as coverage is not high. And i think some guaranteed form of coverage is better. Of course there can be many ways to see this part so is up to an individual.

Term enhances your overall coverage and gives you that top up needed to cover your liabilities while they are around.

Besides the 2, continue investing and growing your investment.

 

[needreader]

Hi just need a quick opinion on this. Would it be better for me to purchase a term life insurance plan or a whole life insurance plan? Whole life bring benefits but i felt that term life insurance provides better coverage. Any suggestions?

Thank you!

My own personal opinion:

Term insurance

Pros
a) Lower premium
b) Greater coverage
c) Flexibility (you can cancel anytime you like)

Cons
a) Limited coverage period
b) Higher premium as you age (i.e 500 when 30 years old, 600 when 35 years old)
c) Non recoverable cash

Life insurance

Pros
a) Fixed premium (no surprises every year)
b) Longer coverage period - as long as you keep paying, you are covered by them. They cannot get rid of you
c) Cash is recoverable (Nobody would do that because once you surrender the policy, you are not covered)

Cons

a) expensive premium - for the same coverage, you need to fork out 2-10 times the value
b) Lock in period - have to pay a high premium if you choose to terminate the policy