Which is a better term or whole life insurance?

What is Critical Illness Insurance?

When it comes to choosing insurance policies, there is much debate on what type of policy should you choose? There are so many options that you can choose from. Here we talk about two of them, whole life insurance and term life insurance and specifically discuss about which one would be more beneficial for you. Read on to find out more.


What are term and whole life insurances?

Understanding insurance policies can be a bit confusing, there’s a lot of jargon involved. However, to put it simply, term life insurance is the type where you choose the ‘term’ or a certain period of 10, 20, 30 years for the insurance payout period. If you die prematurely within this period your immediate family members will receive the full payout. That is why also often called ‘pure life insurance’ is

Coming to whole life insurance policies, it provides whole life coverage and has an investment component known as cash value. This value is tax-free and accumulates slowly over time. You can withdraw the premium from the policy account to use it on expenses.

Let’s have a look at some of the features of these insurances

Term insuranceLife insurance
It covers death benefits only. Only if you die prematurely and within the term, your family members would be getting the pay-out amount.It provides coverage for the entirety of your life and has an investment component which grows over time.
The term period can be set from anything between 5 to 30 years and has to be renewed for the coverage to continue.However, the growth is slow and it takes almost 12 to 15 years for a decent cash value.
This type of insurance policy is affordably priced, however after you cross the age of 50, it can become expensive.It’s a good choice for estate planning.
It can be used an additional temporary coverage with a permanent life insurance policy.Initially the premiums are expensive, but you will be saving more over the years of the police term 


Each life insurance has its own advantages and disadvantages. Term insurance is affordable but has death benefits, whilst whole life insurance offer coverage throughout your life, but the cash value has a slow increase rate. Our team Harpreet Puri can advise you based on your financial need. Call us today.