Whether to buy Term, Whole or another kind of life insurance depends on your need and desire for your life insurance coverage.
If you are a person who has a hard time saving money, getting Whole Life insurance can serve the dual purpose of protecting your family in case of death but also generating a cash value to borrow from for emergencies or life events such as college or marriage.
If you have a temporary need, such as wanting to be able to pay off a mortgage in the event of your death, Term Life Insurance costs less per thousand. It does not accumulate cash value and will expire at the end of the term.
Universal Life or Indexed Universal Life is another choice. It can be guaranteed not to lapse for the rest of your life at a locked in premium, and is more adjustable than Whole Life. It can be made to generate very little cash value, so that it is affordable lifetime protection. Or it can be funded to have lots of cash value that can be borrowed from tax deferred for retirement income.
A good life insurance agent will discuss your financial situation, your goals, and your options with you, and help you arrive at what is best for you.
Life insurance is an indemnification product to coverage the financial liabilities and future obligations of the beneficiaries of the policy’s insured. If the financial liabilities and future obligations are temporary and less than 30 years, purchase term life insurance. If the financial liabilities and future obligations are permanent and ongoing for life, then purchase permanent life insurance. But consider guaranteed universal life, which is generally cheaper than participating whole life insurance.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
They're both great products, but one is not necessarily better than the other. What's best for you may not be what's best for someone else - it ultimately depends on the needs you are trying to meet with the coverage. For example, if you have a temporary debt you want to have covered such as a home mortgage, you may want to consider term insurance. If you're buying coverage for the purposes of estate planning, you may want to consider permanent insurance (universal life or whole life insurance).
If cost was not an issue for you, having a permanent life insurance would provide the optimal route in the long term. However, most people have limits to the size payment they can make each month.
An independent life insurance broker can work with you on a personal level and help you determine how much coverage would be needed to cover all of your goals and for how long you would need the coverage in force (often a combination of term and permanent coverage is purchased). if the premium for meeting every goal is too high, you can determine which are the most vital that you want to meet and restructure the face amount and term length accordingly to lower the premium and keep it to an affordable amount.
I hope the information is helpful - please feel free to contact me for assistance with your coverage and if you have any other questions. Thanks very much.
They are both the best. It's kind of like asking which tire on your bicycle is best, unless you're really good at doing wheelies you'll need both to get where you want to go. To keep things simple, someday you are going to die. At a minimum there will be funeral expenses to pay, perhaps some unpaid bills and maybe you want to leave something behind for your loved ones. The hard part is our birth certificates don't come with an expiration date on them so we never know exactly when the Grim Reaper is going to arrive. A wise person would have a paid up whole life insurance policy with a coverage amount that can address these basic issues. However, whole life insurance is more expensive than it's cousin, term life insurance, and many people can't afford to cover all of their potential death exposure over the course of their entire lives with whole life insurance alone.
At certain stages of our lives, generally our most productive years when people are starting their careers, marrying and having families, carrying home mortgages and car loans, needing to put the kids through college, etc., if the person were to pass away during these stages of their life they need a much larger amount of life insurance to provide for all of the unmet needs they would leave behind. This is where term life insurance comes into the picture. You can buy a much larger amount of death benefit for a lower cost for a period of 10, 20 or 30 years with term life insurance thus protecting your loved ones during the period when your loss would be most financially devastating.
So, really, you need to have both types of life insurance and just get good advice as to what the appropriate amounts of each type of policy should be to maximize your protection over the expected course of your entire life.
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If you are a person who has a hard time saving money, getting Whole Life insurance can serve the dual purpose of protecting your family in case of death but also generating a cash value to borrow from for emergencies or life events such as college or marriage.
If you have a temporary need, such as wanting to be able to pay off a mortgage in the event of your death, Term Life Insurance costs less per thousand. It does not accumulate cash value and will expire at the end of the term.
Universal Life or Indexed Universal Life is another choice. It can be guaranteed not to lapse for the rest of your life at a locked in premium, and is more adjustable than Whole Life. It can be made to generate very little cash value, so that it is affordable lifetime protection. Or it can be funded to have lots of cash value that can be borrowed from tax deferred for retirement income.
A good life insurance agent will discuss your financial situation, your goals, and your options with you, and help you arrive at what is best for you.
If cost was not an issue for you, having a permanent life insurance would provide the optimal route in the long term. However, most people have limits to the size payment they can make each month.
An independent life insurance broker can work with you on a personal level and help you determine how much coverage would be needed to cover all of your goals and for how long you would need the coverage in force (often a combination of term and permanent coverage is purchased). if the premium for meeting every goal is too high, you can determine which are the most vital that you want to meet and restructure the face amount and term length accordingly to lower the premium and keep it to an affordable amount.
I hope the information is helpful - please feel free to contact me for assistance with your coverage and if you have any other questions. Thanks very much.
At certain stages of our lives, generally our most productive years when people are starting their careers, marrying and having families, carrying home mortgages and car loans, needing to put the kids through college, etc., if the person were to pass away during these stages of their life they need a much larger amount of life insurance to provide for all of the unmet needs they would leave behind. This is where term life insurance comes into the picture. You can buy a much larger amount of death benefit for a lower cost for a period of 10, 20 or 30 years with term life insurance thus protecting your loved ones during the period when your loss would be most financially devastating.
So, really, you need to have both types of life insurance and just get good advice as to what the appropriate amounts of each type of policy should be to maximize your protection over the expected course of your entire life.