If you have done any research at all, you’ll find that insurance policies are split mainly into term and whole of life. Term policies, as the name suggests, provide coverage for a fixed term and expires thereafter without a payout if no claim is made. Whole life policies cover a person until he/she makes a claim.

Many people buy whole life policies because they think that their need for insurance is greatest when they are old. Sounds sensible, but let’s examine this in greater detail.

When we start our careers as young working adults, our need for insurance is the greatest. This is not to be confused with the chance of claiming insurance. The chance is indeed low, which is why our premiums are relatively affordable.

However, our cash savings are low, our mortgage is mostly unpaid, our kids are young,