Wiz Insurance – Life Insurance: Choose Term Life or Whole Life – Life insurance products have many variants and types of insurance with various advantages and benefits that we can take, but when we are faced with the situation to choose the insurance product to be selected we become confused, which good and proper insurance products.
Essentially, life insurance consists of 2 products, namely traditional life insurance and modern life insurance, Life Insurance Term life and Whole life is included in the type of traditional insurance. The following case studies may help you to choose which life insurance is right for your needs
Case study :
- At the age of 30 years, Mr. A bought life insurance type “term life” with a term of 20 years. The concerned will be covered by insurance until the age of 50 years. If Mr. A dies within 20 years from the time he takes out an insurance policy then the compensation will be given to his heirs. However, if Mr. A is still alive until the expiry of the coverage period, then the concerned will not get anything and paid premium will be forfeited.
- Mr. B purchases a life insurance type of “whole life”, which will provide lifetime protection or usually until the age of 99 years. If during the coverage period Mr. B died, the heirs will receive life compensation. The difference with term life insurance, on term life insurance if the insurance period until the insured was alive then it will not get anything. Another case with whole life insurance, if until the age of 99 years turns out B is still healthy walafiat then there is a cash value to be given, premiums that have been paid will never burn.
From the case study above, we can know the type of coverage provided by the insurance Term and whole life, Usually the premium paid for the whole life insurance is more expensive than term life insurance, this is because the risk of claims must happen. Rarely have a healthy person until the age of 99 years right? In Indonesia, the life expectancy of men 65 years and women 70 years.
Now depending on you, what kind of insurance best you need, so you can get the optimal benefits in accordance with your needs and budget.