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What are the benefits of term insurance and life insurance?

Insurance companies try to cater to all types of clients. As there are different types of classes that exist in society and all of them have different types of requirements. So, the companies investigate the market and see the problems people face then they propose the solution to that problem in the form of a service offered by them. Then people opt for what suits them as per their requirements. That is how the whole market works.
Companies get their benefits, and the clients pay for the solution of the problems. Here is a great post talking about different types of life insurance. There are different types of insurance services. The beneficiaries or the insured person get the benefit as per their contract with the insurance company. In some states of the world, insurance is mandatory while in others the people have the choice, so they opt if they want it or not.

Now as per life insurance there are two main types considered in the market which includes

  • Term Life insurance
  • Whole life insurance
And both have their pros and cons.

Benefits of term life insurance:

As can be judged from the name the term life insurance is for a certain time. The time limit depends on the contract and the service you opt for. In some cases, the term time is ten years and in some, it is twenty years. It varies from company to company as well. Or even all the companies could offer you the same limit, but the services would vary. If you are unsure about the future and want something temporary, then you should go for term insurance with the mindset of converting it into whole life insurance later or to extend the limit later. Also, this type of insurance is budget-friendly and costs lower. But it only gives the claim to the beneficiaries if the insured person dies

Benefits of whole life insurance:

Life insurance is a long-term contract that lasts a lifetime and adds value to the money, or the premium paid as well. The beneficiaries get the claim. There is no restriction of the term at any point. In this type of insurance, the premiums are higher, and they are heavy on the pocket but in the end, if the day a person needs life insurance and paying for this never go in vain. It is considered an important part of life these days.How to choose the right insurance plan for you? It depends upon your financial condition and stability that which one you choose to go for. If term insurance suits you then you can go for it and then, later, you can even extend the contract but if you are ready to take insurance for the whole life and lessen the risk factor then you must opt for life insurance in the first go. But you need thorough research or quotes for this purpose.

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Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 22nd March 2021.

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