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The purpose of life insurance is to protect you and your family's financial stability in the event you are diagnosed with total permanent disability, terminal illness, or even when you pass on.
|Types of Life Insurance||Benefit||Who Is It For|
|Whole Life Insurance||Offers you a lump-sum payout in the event of disability, terminal illness, critical illness (depends on your choice of plan), and death, with possible cash returns – for your entire life.||Young adults, professionals, and homeowners|
|Term Life Insurance||Offers you and your family a lump-sum payout in case you are disabled, terminally ill, critically ill (optional), or in the event of your death – up to a certain age only, e.g. 75 years old.||Fresh graduates, first-time insurance buyers, and first-jobbers|
|Universal Life Insurance||Often offered to high net-worth individuals, a Universal Life insurance plan offers you the usual whole life death benefits – although with the flexibility to change your sum assured and premiums anytime, and the premiums you pay can be investment-linked.||High and ultra-high net-worth individuals considering legacy planning|
So, you've heard of people buying term life insurance, and others buying whole life insurance (commonly referred to as life insurance in short) – but what are the similarities and differences between term and whole life insurance?
What is whole life insurance? Is it a good investment? What are the pros and cons of whole life insurance plans? Whole vs term life insurance is one of those never-ending arguments – you're either a whole life insurance type of person, or you're a term insurance person. Universal life insurance? Forget it, those people won't be reading this page. Below, we list out the advantages and disadvantages of a whole life insurance plan: