Which Is Cheaper Term Or Whole Life Insurance?
12689 POINTSview profileTed RatliffOwner, SFS Associates,In the initial years term is cheaper. However if you need the insurance for long term needs term insurance gets unaffordable in later years because the premium will increase with each term. Some policies cannot be renewed after a certain age. Whole life premiums are more per month, however the premium never increases and the cash value build up can make the total net premium far less less than term in the long run when you subtract the cash value from the total premiums paid. Which is better? It depends on the reason for the policy.Answered on May 16, 2013flag this answer
4330 POINTSview profileJerry Vanderzanden, CLU, ChFCCo-Founder, Coastal Financial Partners Group, CaliforniaComparing term and whole life on cost depends on the time period of measurement. At most ages, the first year term premium for a newly issued, underwritten policy is going to be less than the same for a whole life policy. But it isn't a good comparison. Term is what you buy for temporary needs where the coverage need is know up front. Whole life is priced for a premium that will be level to age 100 and beyond and provide coverage that you cannot outlive. It starts out higher but ends up being less than premiums for term later in life. Whole life for lifetime needs will always cost less than the term costs for lifetime.Answered on May 16, 2013flag this answer
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaDepending on your age, guaranteed level term life insurance can be purchased up to 5 to 30, sometimes even 40 years. If you purchase a term contract with a conversion clause, you have the option to extend term coverage to permanent coverage within the window of convertibility. Strictly on the basis of your question this is the economic way to go. However, if you have permanent financial liabilities and your beneficiaries would suffer economic loss at your demise, then you should purchase guaranteed universal life.Answered on May 16, 2013+01+1 this answer
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11783 POINTSContact Meview profileLarry GilmorePROAgent Owner, Gilmore Insurance Services, Marysville, Washington StateWhich is cheaper term or whole life? How long do you want the policy? The easiest way to think abut it is term is the cheapest for the short term and whole life is the cheapest for the long term. Depending on how you establish your dividend payouts you can even create a whole life that is the most expensive the day you buy it and there after gets a lower premium year by year. Term in reverseAnswered on May 16, 2013+01+1 this answer 0flag this answerview more answers by Larry Gilmore
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