At certain point of your life, people will start to look at insurance. You may already have insurance coverage by the virtue of your parents, but you want to know more . Or you may just want to add more coverage to your existing policy. So the question to ask: What kind of life insurance should I get? What is Whole Life Insurance? What is Term Life Insurance? Which is better for me?

I hope I can answer these questions in this article.

What is Whole Life Insurance?

A whole life Insurance is essentially an insurance coverage that has cover for you in the events of accidental death or physical disabilities. There is also an additional cash value for this type of insurance. The longer you keep this insurance, the higher is the value of the returns if you decided to give up the policy.

In other words, there is MONEY in this type of insurance.

This is a prime choice for working adults who have an established career or people who are financially sound. The reason is that the whole life insurance is much more expensive. This is due to the extra cash value of the insurance.

There are also people who likes it from the viewpoint of personal finance as there is a little bit of investment

There are people who wants just the coverage for themselves. So I believe that the Term Life Insurance comes into play.

What is Term Life Insurance?

A term life insurance provides a much higher insurance coverage for you in the events of accidental death or physcial disabilities. It is not expensive to buy a term life insurance because there is no cash value to the policy.

In short, if you give up the insurance, there is no money back.

This type of insurance are suitable for people who are have little financial abilities. People who are in their 40s-50s who have not never buy insurance at all should also consider this type of insurance.

So which one should I choose?

Ready for my suggestion? My suggestion is: have a mix of both. The reason is that whole life insurance generally has pays the insured lesser in events of death because part of your payment has been used to generate cash value. If you look at the rising cost of medical expenses, it is not wise to have a lower coverage for yourself.

Term life insurance are also very affordable. The policy can go as low as just $10 per month and you get covered for a lot of money. Yes, there is no cash value in return but the coverage is there for you at a very low cost.

If you get both types of insurance to ensure a balance in terms of cover and cash back.

That is the best of both worlds, isn't it?