What do you think is a better insurance? As per my point of view, these are two different policies serving different purposes. Term life and Whole life both have their own strong and weak points. So the question of comparison does not even arise. If you are living in India then this is most useful to choose right life insurance plan.

Referring history, all insurance was term insurance covering life only. But with time consumers started complaining about the benefits one should receive after paying the premium over 20-30 years. They felt it was injustice. Henceforth, life insurance started giving the option of cash value.

Let us discuss the main features of Term Life Insurance and Whole Life Insurance as described below.

Term Life Insurance:

• It covers life only.
• Premiums are paid only for the term period
• The premiums are cheaper
• Beneficiary is eligible to benefits only in case of death.
• If the policy holder lives after the maturity term, there are no benefits.
• It covers life only, has no additional benefits to it.

Whole Life Insurance:

• It takes care of both life and investment.
• Premiums are paid life long.
• The premiums are expensive.
• Beneficiary is eligible to benefits in case of death.
• If the policy holder lives after maturity period, the policy holder receives both the maturity value plus cash value as applicable.
• It has dual purpose, covers life and offers added benefits like cash value.

Which one is better according to you choosing?

From the above we can make out that both these policies are different and do not serve the same purpose. Term life insurance benefits people who generally have good health and follow healthy living. They can save on the large premium to be paid out and go for other better investment instruments. Whereas Whole life insurance benefits people who are already suffering from certain kind of disease and cover is necessary. It generally works for people who are wealthy enough to carry on paying huge premiums life long.

The combination of both term life insurance and whole life insurance is the best portfolio of life insurance one can possess.

But first and foremost, it is necessary to understand why you are purchasing life insurance. You will be more content when you figure out why you wish to buy the policy. Analyze your needs and its importance. Figure out what needs to be covered and who should receive the benefits, etc. Once you make a decision, start shopping for quotes from various sources like the local representatives, brokers and sites having online comparing tool. Compare the quotes received, the coverage level, other added values, offers, etc. they are offering. Choose the policy that fits your requirement in the best way at the most competitive price available.

And at PolicyBazaar, you can find the right insurance plan at most competitive rates. You also take special offers going on from time to time, for any type insurance help or enquiry you can call 0124 457 67 77 and also see website: http://www.policybazaar.com/life-insurance/life-insurance-india.aspx

Chavi Singal
http://www.articlesbase.com/insurance-articles/which-one-rules-term-life-insurance-vs-whole-life-insurance-724374.html

It seems like term life insurance gets most of the promotion these days. Most financial advisors usually tell their clients to buy term. Their theory is that term is cheaper, and they can take the extra money and invest it so they will have enough savings to cover themselves in the future. That is a good theory, but it does not always work out in the real world, so permanent life insurance has a place.

Whole life is permanent life insurance. That means it will cover you for your entire life as long as the policy stays in force. Keeping a policy in force usually means that it is paid for or paid up. Many people pay for whole life with monthly premiums, though some policies can be paid up over a period of years. Some policies can even be paid up in one single premium, though that has some tax implication you will want to consider before you purchase it.

If you have a whole life policy, and you live to be 100 years old, you will probably get the entire face value of it as a century birthday present. If you do not survive that long, your beneficiaries will get the cash. That cash amount is usually tax free.

Whole life insurance can, given time, build up a cash value. That means that the policy will have a value that can be cashed in or borrowed against. Term life, on the other hand, usually does not build up any cash value, and can only be used as life insurance. So whole life can combine savings with life insurance.

Financial professionals like to advise their clients that insurance does not make a good investment, and that is why they should buy term and invest the difference. However, in these days of shaky stock markets and very low interest rates on savings accounts, a guaranteed return from an insurance company looks pretty competitive.

Who buys whole life insurance? Well, this product is marketed to everyone from children to senior citizens.

Parents or grandparents buy policies for their children and grandchildren because it is cheap to insure a child, and because rates wil still level through their whole lives. That way they can give the child a gift a lifetime security that will also build a cash value.

Adults may buy term, but also add a whole life policy. Younger adults will still find competitive rates, and know that their whole life policy will not expire in 10 or 30 years, just when they are older and more expensive to insure.

Senior citizens, up to age 85, can find small face value whole life policies to use to cover funeral bills and other final expenses. That way they can plan for this large financial strain without being a burden to their children and grandchildren. Sometimes the grown kids of a senior citizen will purchase a policy for their parent as part of their elder care.

Term is popular now, but you can see, many people may desire a whole life insurance policy.

Marilyn Katz
http://www.articlesbase.com/finance-articles/what-is-whole-life-insurance-729757.html