What is the difference between term life and whole life? How do I know when to get which plan?

Term life insurance is an insurance product that insures you for a period of time or until a certain age. It provides coverage against death and there will be a payout in the event of the policyholder’s death/total and permanent disability/terminal illness diagnoses.
Whole life insurance is a life insurance product that is guaranteed to remain in force for the policyholder’s lifetime provided that the full premiums are paid or until the maturity date of the policy. There will often also be a surrender value or cash value of the plan after it has been held for a specified period of time.

The main difference will be the time period of the policy, the premium as well as the cash value.

Each plan has its own pros and cons. It will be good for us to understand more about your personal financial situation before providing you with advice.

Do get in touch with us if you are interested to find out more.

Generally, a term insurance policy provides you with insurance coverage only. On the other hand, a whole life insurance policy provides you with insurance coverage, together with some cash value over time.

Here is a comparison between the two: Term vs Whole Life Insurance Singapore

On the whole, we need to understand your needs and how you wish to plan for your future. For instance, if you want the cheapest form of insurance coverage for a short period of time, then a term insurance policy may be suitable.

I share quality content on estate planning and financial planning here.