Among the misconceptions that surround life insurance and in most cases discourage people from buying it is the confusion between two types of plans: Pure Life Policy that offers protection only and Unit-Linked Life Policy that includes an embedded investment/savings element in addition to protection.
WHAT DO BOTH PLANS HAVE IN COMMON?
Simply put, both plans cover against eventualities by securing loved ones against any financial setback in case of the policyholder’s untimely demise. In other words, in the event of tragic circumstances a lump sum amount of money is paid to the insured person’s family by the insurance company.
WHAT ARE THE DIFFERENCES BETWEEN THE TWO PLANS?
While both plans provide family protection in case of death, only the Unit-Linked Life Policies include a savings element. The savings element is for a milestone: pension/retirement or kids education.
Another crucial point of difference is affordability: Pure Life plans are much less expensive since you pay for the cost of insurance only.
WHICH PLAN SHOULD I GET?
Our recommendation is to get the plan that provides you with the highest possible protection taking into consideration your budget. And never sacrifice on the life insurance coverage that gives you peace of mind just to settle for a plan with savings/ investments options. Only after you have the right life insurance in place, you might want to add a saving/investment element to your plan.
HOW MUCH COVERAGE DO I NEED?
10x your salary is the quick math. It may sound like a lot, but think of everything it could be used to cover: a mortgage, debt, tuitions, higher education, an emergency fund and more.
We work together to figure out the most suitable protection coverage that goes well with your future needs and goals as well as your current budget. In order to make an informed decision, just reach out to any of our team members or click below to request a quote.