In this field there is always the debate whether is whole life better or term life is better. In all honesty it depends on the circumstances and what you are looking for. Do not worry I will be breaking down why whole life is better than term and vice versa in specific cases. This is why you should trust BIA with advice on what policies to consider since we are the professionals in this field.
Well lets get started with what each insurance offers and how are they different. First off, whole life has two aspects to the account, one being the cash value(savings of payment/equity) and the other being a death benefit, which cover accidental, illness and other benefits. Term life insurance only has a death benefit and are usually only accidental. As we can see the differences are shown right away, whole life has more coverage than term life, which is why premiums differ so much from the two right away.
Now moving on, whole life has everything term life can offer and more with likes of income protection, it is more pricey but yet still affordable. Whole life is a permanent policy that is no contract with a client, said client can leave when ever they want and be able to take any funds invested out of the cash value account. Whole life has flat premium for the whole life of the client, so in the long run the client does not need to worry about health conditions occurring to skew coverage or increase in premium.
Second of all, term life in the other hand also can be left whenever the client would like but all funds are non negotiable and cannot be returned like said whole life. Term also can see increase in premiums due to it having to being renewed after 10-20 years depending on the company, this is due to medical conditions arriving and age. While term is cheaper at a younger age than whole life, whole life in the long run will be cheaper than term life later on in life where life insurance is counted on the most.
However, you must be thinking right away, well whole life is so much better than term life, why would anyone want to get term life anyways? Well 9 times out of 10, the person who gets term life is not aware and not told by the agent who is assisting the client at the time. This being said whole life does stand superior than term life for insuring an individual life and family but there is more to term insurance just term life.
So there is term life and there are other term insurances that whole life cannot do or compete in the same field simply because it does not exist. Whole life cannot cover mortgage protection, key person insurance and disability insurance.
These are the aspects where a term insurance will thrive and have certain better criteria than whole life. Mortgage protection is only given in term since it is based on how many years of mortgage are left and is renewed after 10 years in most cases to see if there is a refinance or difference in total mortgage no medical check up needed, also whole life cannot be in this market. You will see the pattern as to what whole life can and cannot cover here shortly. Another term insurance is key person insurance, this is for business personnel that could effect a business in a negative aspect if the insured were to become disabled or dead. These term insurances are shorter than the rest at 3-5 years, rates usually do not go up, it is mainly a renewal and most checkups for renewal are not needed. Overall, these are different than term life since it does not require a check up in most cases and gives unique benefits for paying income, resources to the insured and the business. Another valuable insurance is disability insurance, this term insurance is also ranging from 5-10 years and is based off income, which also is different from term life since check ups are not so much necessary at all to begin with. There are many term coverages that differ and could be great for individuals and or businesses.
Going forward we have talked about whole life versus term life insurance the negative and positive aspects of both. Also the other term insurances offered that are valuable and is very different than term life for the value they give and offer.
Ultimately the end result for BIA is we recommend whole life for individual, children and families to choose since they are more dependable with income protection, benefits, premiums and waivers unlike term life insurance. What we offer for term insurance is more outside the realm of term life which are key person, disability, and mortgage protection.
Overall, here at BIA we hope our trusted clients can have respect for us agents with the advice we give and offer. We only hope to provide the best price, coverage and benefits to our clients to the best of our abilities every given day.
