Cheap Term Life Insurance Vs. Whole Life Insurance

If a person is planning to buy life insurance, there is one important thing that he should try to think about and that's whether to buy expensive whole or traditional life insurance or to go for cheap term life insurance.  Actually, both of these types of life insurance can really help a person provide financial security and protection either for his family or for his parents or other older relatives. However, there are some factors that can affect his decision on whether to buy term life insurance or traditional life insurance.

What is the difference between these two types of life insurance? First of all, the traditional or whole life insurance is a kind of life insurance policy that will protect and secure the future of the policy holder as well as his beneficiaries stated in the policy, be it his parents or his family like his spouse or children, for a lifetime.  He can buy life insurance with a paying period of 20 years and the insured money, for example, is a million dollars. Right after he had signed the life insurance policy contract, he is immediately protected and secured. After the paying period, he can have the option to get the insured money. If something happens to him anytime like he was killed due to an accident or a chronic illness, the insured money will go to his beneficiaries.

Whole life insurance is very expensive especially if the person who wants to be insured is already older.  There is a very big difference in the premium payments between a person who is still 20 years old and someone who is over 45 years old.  That is why, if a person is already in his prime of his life, the best type of life insurance policy that he can go for is the cheap term life insurance.

That is right. One of the best tips that anyone who is already on the prime of his life is to go for term life insurance. The reason that term life insurance is cheap is because the protection and security for the policy holder is only temporary.  If he gets a term life insurance policy with a paying period of ten years, after that period, he is no longer protected and secured.

Actually, whole life insurance began as cheap term life insurance. But since policy holders were disgruntled over the fact that after paying for something, they would wind up with nothing.  However, if a person who buys term life insurance would like to continue protecting himself and his family, he can buy another term life insurance policy if he wants to.