Life insurance takes the life of the insured as the subject matter of insurance and takes the survival or death of the insured as the payment condition. Like all insurance businesses, the insured transfers the risk to the insurer, accepts the terms of the insurer and pays the premium. Different from other insurance, life insurance transfers the risk of survival or death of the insured.

People might hesitate as they make decisions on which type of life insurance to choose. This article helps you decision the most suitable type to choose.

01. Who needs Whole Life Insurance?

Whole life insurance, just getting its literal meaning, guarantees protection to the last moment of the ensure’s life, that is to say, the ensured will most certainly get the money.

Therefore, this also shows that the price of whole life insurance will be several times more expensive than that of term life insurance.

So, who is whole life insurance suitable for?

Considering the traits of whole life insurance, people with sufficient budget, older age, and the pursuit of wealth inheritance seem more likely to be in need of a whole life insurance.

For those who need to inherit their assets, whole like insurance appears to be a fairly good choice.  Whole life insurance is paid to the designated beneficiary as an insurance beneficiary, which can be distributed completely according to the wishes of the insured, and is protected by law and exempt from inheritance tax.

02. Who needs Term Life Insurance?

Term life insurance is much cheaper than whole life insurance. In short, it is suitable for families with limited budget and younger breadwinner.

Some might wonder, why do family supporters have to buy life insurance?

Is critical illness insurance and medical insurance not enough?

In fact, the breadwinner of the family is the main source of family income. In case one day the breadwinner encounters misfortune, the family’s daily expenses may not be well covered. What about the mortgage, car loan, child support, and daily living expenses? How can the family support all the expenses?

Problem solved if you buy life insurance. The insured can get a compensation that support at least the basic expenses of the entire family, with which the can get through the toughest moments and start over.

Therefore, term life insurance is more suitable for the purchase of the mainstay of the main responsibility of the family. If the budget is sufficient, it is best for both husband and wife to configure it. Considering the risks controlled, it is not luxury to get one.

（Writer：Ciby）