Everyone wants protection and security in shape of funds to secure the life’s uncertain happenings. To deal with such things, they use to consult the insurance companies because these financial institutions are the appropriate one who has relevant consultancy as well as packages to protect life as well as death. Here are some of the types of insurance we are going to discuss below.
Fixed Term life insurance
Fixed Term life insurance is an insurance type in which you have the insurance security for the fixed period and at the fixed return. It will give the death protection only, and you can not withdraw it before the maturity, even if you need the money.
Whole term life insurance
Whole life insurance policy is another type of death protection policy as well as it gives the security to other life events as well. You can withdraw money or treat it as a savings and borrowing, means if you need money, you can withdraw it anytime in a lifetime. This policy is not for a limited time it secures for the lifetime of a person.
Difference between fixed and whole term life insurance
Fixed Term life insurance and whole life insurance both are life insurance policies and give a chance to the person to get through into and choose the best out of both as per the requirements. Here are some major differences .
between fixed and whole term life insurance:
Fixed Term insurance is for the fixed or a specific time and cannot withdraw before that ID money is needed. But whole life insurance is for the lifetime, and a person can have money out of premium if needed anytime in life.
Fixed insurance only gives death protection, but whole life insurance gives death protection as well as act as the saving of the investment.
Premiums for the fixed Term insurance are flexible and easy to pay and manage as per the person’s affordability. Whole life insurance has a flat rate of premium throughout life.
Fixed insurances premiums vary from year to year, but whole life insurance premiums remain the same throughout the policy maturity.
Fixed Term insurance has a simple structure and policies which are easy to understand for everyone, but whole life insurance has a complicated structure. It is not possible for a person to understand by himself completely, so need to hire a professional if he wants to enjoy the complete benefits of whole life Insurance.
Fixed life insurance cannot be withdrawn means if you have a policy for 30 years, so only be claimed after the completion of that period. But whole life insurance can be withdrawn by the person anytime in life.
Premiums for the fixed Term insurance are easy to pay for everyone and can be adjusting as per the budget but whole life insurances premium are expensive, and everyone cannot afford to pay.
Which one is appropriate for you?
Whether you choose fixed Term life insurance or the whole life insurance, your choice is to depend on the requirements and your needs. If you want to get the death protection as well as other protection and benefits or you can afford, they should go with the whole life insurance policy. And if you are not able to pay the high premiums and want to adjust them as per your affordability, then the fixed Term insurance policy is quite a good option for you.