Whole life is not necessarily better than term insurance, but it can be.
Whole life provides coverage, as the name suggests, for the whole of your life, it does not expire like most term policies. Whole life policies usually have cash values which grow in a tax advantaged way. In addition, whole life can provide additional financial and retirement planning opportunities.
With term insurance you pay for the coverage and in most cases that is what you get - life insurance at a specified price for a specified term.
If you need coverage for the long term, then whole life could be better. If you need coverage for the short term, then term insurance could be better. Another product to consider is Universal Life which could be better.
What policy is right for you depends on your individual situation. An independent insurance broker can help you find the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
I would not say that whole life is better than term life. It really depends on the clients need for life insurance.
Whole life insurance name is literal, it is a face amount of life insurance that will last your whole life at a fixed premium. It is typically more expensive than term when your young therefore the face amount is typically less than a term insurance counter part. It is however much more affordable in later years because of the fixed rate.
Term life insurance is typically more affordable in younger years with a fixed time period of level premiums such as 5-10-15-20-30-35 years. Term life insurance is used to cover a time period of debt such a mortgage. For example you purchase a home with a $250,000 mortgage for 30 years. It would be prudent to purchase a $250,000 30 year term policy as well. Try to avoid mortgage life insurance unless you are uninsurable. This term is known as decreasing term life and reduces as the mortgage is repaid. With straight term life, your loved ones will receive the difference of the face amount instead of the insurance company.
President, Lane Independent Agency, Southern California
Better depends on available funds. Something is better than nothing. If you cannot presently afford whole life, then getting term insurance is the smart thing. Getting whole life and not being able to afford it, may result in not paying the premium and being left with NO insurance. A reputable insurance agent will only sell you what you need AND can afford. Whole life never changes its premium, unlike term which will escalate at the end of the stated number of years. Also whole life builds up cash value. That value can be borrowed against, and not repaid, kept tax free, although it will lower the death benefit if not repaid. Whole life can eventually pay its own premium, from the cash value being built up. But be sure you can afford whole life at the beginning. Do not ever leave yourself with no insurance. Thank you. GARY LANE.
That is an excellent question. You should be aware that there are times when a term policy makes more sense to have, but there are two points that make a whole life policy better than a term. The first is that a term policy ends. After that happens, you have to renew, or get another policy. If your health declined during the policies life, that may make it difficult to get another policy. In any event, your increased age will cause the new policy to be more expensive. A whole life policy ends when you do. your health can decline, and it has no effect on your locked in payment. The second is that term policies have no value, other than what the face amount is should you pass. A whole life policy will generate a fund of cash that can be borrowed against, should you ever need. I hope that helps. Thanks for asking!
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Whole life provides coverage, as the name suggests, for the whole of your life, it does not expire like most term policies. Whole life policies usually have cash values which grow in a tax advantaged way. In addition, whole life can provide additional financial and retirement planning opportunities.
With term insurance you pay for the coverage and in most cases that is what you get - life insurance at a specified price for a specified term.
If you need coverage for the long term, then whole life could be better. If you need coverage for the short term, then term insurance could be better. Another product to consider is Universal Life which could be better.
What policy is right for you depends on your individual situation. An independent insurance broker can help you find the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Whole life insurance name is literal, it is a face amount of life insurance that will last your whole life at a fixed premium. It is typically more expensive than term when your young therefore the face amount is typically less than a term insurance counter part. It is however much more affordable in later years because of the fixed rate.
Term life insurance is typically more affordable in younger years with a fixed time period of level premiums such as 5-10-15-20-30-35 years. Term life insurance is used to cover a time period of debt such a mortgage. For example you purchase a home with a $250,000 mortgage for 30 years. It would be prudent to purchase a $250,000 30 year term policy as well. Try to avoid mortgage life insurance unless you are uninsurable. This term is known as decreasing term life and reduces as the mortgage is repaid. With straight term life, your loved ones will receive the difference of the face amount instead of the insurance company.