Affordable Term Insurance or Permanent Insurance for whole life coverage?

When you care deeply for someone and you were to die, you need life insurance - if your financial resources are not enough to get them through their life. Think about your loved ones losing their home and your children struggling to find the financial means to complete their studies. But which type of insurance do you need? Term Insurance or Permanent Insurance?


Term Insurance: This tends to be the most affordable type of insurance and is generally available for terms of 10, 20 or 30 years. However, when you renew your coverage after the end of your original term, premium goes up significantly. Term Insurance is excellent to manage short term risk. Examples, pay off mortgage, replace employment income etc should you die.


Permanent (Whole Life) Insurance: This provides insurance coverage over your whole life. The premiums are usually low if taken when young and high if taken in later years. It provides a number of benefits. Premiums usually remain the same over the life of the policy and it builds cash value which can be cashed if policy is cancelled. Permanent life insurance is suitable for transferring assets to next generation, paying taxes at death and for funeral expenses. For most people, a combination of Term and Permanent insurance may be ideal. 


When is the best time to take insurance? When you think you don't need it! When you are young and healthy, premiums are much lower. Talk to us today to do a needs analysis and determine the type and amount of insurance you need. Let us protect your loved ones from financial hardship - when you are not able to.