Life Insurance: How to Choose?


When you have recognized the important status of life insurance, you may raise another question: should we choose either whole life insurance, or term life insurance?

There are certain differences between term life insurance and whole life insurance in terms of policies, savings and other functions. Consumers are recommended to choose suitable products according to their own needs and economic ability. First, we should understand the conceptual difference between term life insurance and whole life insurance.



Term life insurance, also known as "term death insurance", refers to the insurance in which the insurance company is responsible for paying the insurance benefits in case of death of the insured within the period specified in the contract. If the insured still survives at the expiration of the insurance period, the insurance contract will be terminated, and the insurance company will no longer bear any obligation to pay, nor will it refund the premiums collected. This is pure consuming insurance.

Whole life insurance, compared with term life insurance, is an indefinite death insurance. That is, from the invalided date of the insurance contract, the insurance company will be responsible for the life of the insured until death. In addition, insurance company must pay a sum of insurance indemnity eventually. The insurer must pay whenever the insured encounters fatality.


Since term life insurance can not be inherited. Its premium is comparatively lower than other life insurance when the insured amount is equal. Customers can freely choose the length of insurance period according to their own needs, from 1 year to 5 years, 10 years, 20 years, or even 30 years, with certain flexibility. Term life insurance is more suitable for those with low income and heavy family economic burden, especially in the initial stage of the business. It does not need to occupy too much capital to purchase term life insurance. For those who are the breadwinners of the family, term life insurance can help them obtain the maximum amount of protection with the lowest premium. People who are engaged in relatively dangerous work in the short term and in urgent need of protection are also suitable to choose term life insurance.

Life insurance takes life as the insurance term. It provides both prevention and asset inheritance and is suitable for people with high and stable income. If you have a heavy family responsibility, i.e., children and parents to take care of and house or car loans to repay, whole life insurance is more suitable than term life insurance, especially when you plan to leave the insurance money to your family or other people.

At present, the most common choice of consumers is to take term life insurance as the main insurance, with a certain amount of accidental injury insurance, hospitalization medical insurance and critical illness insurance added to form a relatively complete insurance plan. Such an insurance scheme is also one that is highly recommended.


In summary, life insurance is essential to a family. Under sufficient premium budget, family breadwinner should be appropriately allocated, and priority can be considered given to term life insurance.