Whole life insurance vs.Term-life insurance

Hi, I just got married and I am now looking for life insurance which can cover my beloved ones against the risk of my unexpected death. Any cues what are the difference between whole life and term life insurance? thanks!

Hi David,

Term Life guarantees you (the insured) and your beloved Beneficiary (your wife) that after the insured's death, the beneficiary can receive the death benefit. The good thing for Term Life is that the insured period is pretty short, say from 1 year to 5 years, or other periods (you gotta check the details for each plan). But the unfavorable thing is that because it's usually for those people who'd like to pay a relatively lower premium, the death benefit may not be comparable to that in the Whole Life Insurance. For some plans, the sum insured is set when you're buying the plan, and it won't grow over the time. This is rather different from the Whole Life Insurance.

For Whole Life Insurance, it issues dividends over the time so the death benefit will be growing over the time. Many plans in HK will insure the insured period for the whole life (up to age 100). Certainly, the premium you pay for this plan will be relatively higher than that in Term Life, but it is worthwhile if you want the benefit to grow over time to guarantee that your beneficiary can enjoy the last bit you have left for your beloved one(s).

To better understand the two different plans, you should find an agent to talk to.

Hope the above helps!

Agnes

Hi David,

I am an insurance agent at Prudential. I'll be happy to go through the differences between Term and Whole Life insurance with you. Please PM me for details. =)

Regards,
Elaine