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**monkeybusiness** · 30-12-2007, 12:27 PM

	Quote:			Originally Posted by Leocravensky
	Wholelife serve as the purpose of protection of your estate until your very last moment. It also accumulates cash value which can serve as a source of emergency cash in times of need. Some people also use wholelife as a way of passing down his/her estate to his/her beneficiaries. Term is for protection of estate for a fix period of time and expires at a timeframe designated (5 yrs, 10 yrs), the main purpose of term plan is to ensure that you do not leave your dependents financially burdened. Example, you wanna get a 15 years term plan as you have a kid and feel after 15 years your kid can handle things on his own thus you do not need anymore insurance coverage after 15 years. Term comes with leveled term or decreasing term, but term insurance are much more cheaper. I will ask you, do you have any children? If yes, I believe you would want to leave some inheritance for your children no matter when is your last moment. If you have the mentality that your kid can survive on their own when they turn 21+ then whole life might not be so applicable to you whereas term insurance can cover you till when your child turn 21. Also another factor to consider to get whole life is major illness. No 1 will know if he/she will get critical illness a not. Some may not even get it at all in their whole life. How are you to put a timeframe for protecting yourself against expense linked to major critical illness? Yes I do hear the saying goes, Invest the difference and try to accumulate wealth to self insure yourself. Yes if you are willing to use your hard earn money that you have save/invested to pay for your major illness linked expenses, go ahead. But at the end of the day, why waste $100000 why you can pay $2000-3000/year to insure yourself for $100000 for the whole life (and the sum assured increases) and eventually pass it to someone you love. Thats the beauty of whole life policy. And I believe the IFA told you to get term because the IFA's view is that you do not have enough coverage and he/she wants to cut your cost and like what you mentioned, both plans have their beauties.

I have a better idea now after reading this post. Thanks!