"There are 3 main types of life insurance.
Term Life Insurance
Term Life Insurance covers you for a period of time (the term), after which it will expire. It provides basic protection at an affordable price. Whole Life Insurance
Whole Life Insurance, as its name suggests, covers you for your whole life. As such, it requires a higher premium than Term Life Insurance. However, it can be an investment option as it has a cash value that can be obtained when you surrender or as a death benefit.
Insurance-Linked policies are investment plans that include life insurance coverage.
Do check out our article to understand them in greater details."
Covers you for a specific duration (I.e. the term)
Coverage ends after that
No cash value, but may have a surrender value sometimes after a certain period
Cost efficient to cover death/TPD
Premiums are generally payable for the entire duration of the plan
Covers you for whole of life (age 99/100/life)
If you reach the end of the period, policy matures
Premiums used to be payable till 85 or so, nowadays they are payable for a limit number of years only (20-25 years)
Has cash value/bonuses
Able to take policy loan if you are unble to pay the premium (after policy acquires cash value)
Over the years, premiums have come down quite a bit for both type of plans. You will usually want to look at your needs first, before deciding if a term plan or a whole life plan will be a better fit in terms of coverage, features, total cost, etc. It really depends on what you want to cover.
Term plans cover for a period of time. The downside is that it doesnt have a cash value ...
Read 5 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
FWD Term Life Plus Insurance
FWD Term Life Plus Insurance (Renewable Term)
MAX SUM ASSURED
Death, Terminal Illness
Tiq DIRECT - Etiqa Term Life Insurance
AIA DIRECT – AIA Term Cover Life Insurance
No rating yet