Term Insurance differs from Whole Life Insurance in many ways. One must understand these plans carefully before buying one from insurance providers. Though both of these plans offer Life cover, the benefits the insured derives from them differ significantly. An individual’s life and finances can be affected if s/he chooses the wrong plan. To avoid any kind of inconvenience in the future, one can consult a reputed financial advisor and have a clear idea of which plan suits his/her needs.

Which one of these is ideal?

After carefully analyzing various aspects of both the aforementioned plans, one must understand that each of these plans has its own benefits. The applicant can choose a combination of both the plans to avail the best protection for his/her life. Remember, one can buy both these plans depending on his/her financial status and future goals. In this manner, one can get the best of both the plans and offer proper protection for his/her immediate and long-term goals.

Best Plan for youngsters and first time policy buyers:

If an individual is still in his/her 20’s and unmarried, s/he can conveniently pick a term insurance plan. A term plan should be the first scheme that one chooses, as the amount charged as premium is comparatively very low. Yet there is another benefit of buying a term insurance policy early and which is that the amount of premium will be fixed for the rest of the term of the policy.

Best Plan for Married Individuals with Children:

The financial goals of an individual may change once s/he is married and has kids. Thus, s/he has to plan accordingly. Whole life insurance schemes offer the best savings along with safety for their future. The insured can continue with his/her existing term plan, if s/he already has one, and add a new Whole life indemnity as a supplement.

If one does not have an insurance plan and wishes to start investing in one, s/he can opt for combination of both the plans and divide his/her finances after consulting their insurance agent. It is good to buy a term policy and secure one’s family. Also, s/he has to pay lower premiums in comparison to other life insurance policies. Once this is done, s/he can focus on Whole Life plans and purchase multiple policies with different maturity dates. This will be a better way to organise significant financial assistance for one’s future needs.

Best Option for late beginners in their 40’s:

If an individual does not own any life protection policy yet, one should choose a small term plan. The insured has to pay a higher amount of premium for the same sum assured than those who are younger and started their policy in their early 20’s.