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get no returns. If you have committed to a Whole Life, even if you have not started a Savings Plan, the Cash Value generated from your Whole Life Plan can just supplement your Retirement.

- You are really cash tight. There can be many situations (retrenchment) that you may need that extra cash. If that extra $50/month (from your Term Plan) can help you tight over, you may just want to stop the plan and lose the coverage. If you decide to get back the Term Plan, your health may not be favorable anymore to be accepted into the plan or the new Premium (at your older age) is not favorable anymore.

A Whole Life Plan, on the other hand, generates Cash Value and this can be used to pay off your future premiums if you are really that tight. With the feature of the limited premium terms and if you have already finished servicing the plan, you are in no liability with your Protection Plan. You can still get the coverage!

- You and I are living longer. With medical advances, you and I are living longer but in general Males live shorter than Females. The average age for male is around 80 years old whereas for female is around 88 years old. If you have bought a Term Plan but can only be covered till age 80, a valid death claim (after the age 80) will mean no benefits are claimable. If you have bought a Whole Life Plan that covers you for your life, there will be a claim.

If you are a male and you have a loving relationship with your wife, this sum of money (from your death claim after the age 80) will still be a very thoughtful gesture to help take care of your wife for the rest of her lonely life.

As you can see from the above reasons, though you may have to commit higher premiums to enjoy the benefits of a whole life insurance, you will be getting your money worth if you understand the kind of situations you can get in your life stages. In an actual financial planning point of view, to have your money worth, is to have a combination of both type of insurance plans.

Learn more about this author, Dexter Damien Chan.
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