Whole life insurance and term life insurance are two common life insurance products that differ in terms of coverage duration and coverage.
Whole Life Insurance: Whole life insurance is a life insurance product with a whole life insurance period, also known as "whole life insurance". It provides lifetime coverageRegardless of when the insured person dies, the insurance company will pay the sum insured to the beneficiary. Whole life insurance usually has a cash value that can be used to borrow money or terminate the policy early. The premium is higher, but the protection period is longer.
For example, someone buys a whole life insurance policy with a sum assured of RMB 2 million. He pays an annual premium of 20,000 RMB, and the insurance company will provide lifelong protection. If he dies at any time, the insurance company will pay 2 million RMB to the beneficiary.
Term life insurance: Term life insurance is a life insurance product with a specific insurance period (such as 10 years, 20 years, etc.). It provides coverage for the duration of the insurance policyIf the insured passes away during the period of insurance, the insurance company will pay the sum insured to the beneficiary. Term life insurance usually has no cash value and relatively low premiums.
For example, a person buys a 20-year term life insurance policy with a sum insured of RMB 1,000,000. He pays an annual premium of 10,000 RMB, and the insurance company will provide 0 years of coverage. If he dies within these 20 years, the insurance company will pay 1 million RMB to the beneficiary. However, if he dies at the end of the coverage period, the insurance company will no longer pay the sum insured.
In conclusion, whole life insurance provides protection for the whole life and has a higher premium, whereas term life insurance provides protection for a specific period of time with a lower premium. Which life insurance product to choose depends on an individual's needs and budget.
Life insurance