With all insurance, the insured chooses a beneficiary, the person or persons who will receive the proceeds. Which type of policy is best depends on your situation. The cash value of whole life insurance appeals to many people because they include it in their retirement plans. Of course, consumers can purchase the less expensive term insurance and then invest the difference in cost themselves. There is no guarantee which method will reap the greatest benefits to the consumer.
Whole life requires a contract to make payments for a set number of years.
With a term insurance policy, the additional investment is optional. In most states, including Ohio, the law requires proof of financial responsibility for potential liability for accident or injury. It is against Ohio law to drive without proof of financial responsibility. Liability insurance covers damage that you might do to persons or their property. The easiest way to satisfy this requirement is to purchase automobile liability insurance.