what is the difference between whole life insurance and term and which would be better for a 77 year old male.

Answer 1

For a 77-year-old male who does not currently have life insurance....the answer is none.

That's right. The premiums are going to be so high at age 77 that you are better off saving the money and using it to have a higher standard of living now.

Life insurance should only be used as income replacement if the insured is depended on to provide the source of income for a family.

But at 77, the house should be paid for and the kids are all through college by now.

So save the premiums and invest it in something else.....or better yet......spend it on fun stuff.

Answer 2

As a 77 year old person, whole life insurance and term insurance both will very expensive. Life insurance premium is base on the face amount (amount that insurance company will pay in case of death) and life expectancy (How many more years to live). Anyway, there is may be a product for you. Check the following site;

http://www.insureme.com/landing.aspx?Refby=614137&Type=life

Licensed agent will call you after you enter your general questions. You can choose the best for you.

Answer 3

Hi, your friendly insurance guy here again. :)

The type of insurance to get is going to depend on your objective. I've read some of the earlier posts and it's apparent that some of hte posters are not really clear on what they are talking about.

Term insurance IS usually the least costly. At age 77, however, you will be hard pressed to find a company that will issue it to you. Most companies will not issue it at all past age 75.

Your second least expensive option will be Universal Life insurance. It often has issue ages as old as 90 years. It's less expensive than Whole Life and is designed to last for your entire lifetime if properly configured when purchased.

The most expensive option would be Whole Life. At age 77 the cash accrual value of it will be limited and the premium will be very high. Its chief advantages to someone in your age category would be its ability to conceal large sums of money by intentionally turning it into a Modified Endownment contract by over-funding it.

To those who have suggested the questioner has no need for life insurance - until we know why he is asking it's not appropriate to suggest he has no valid need. Let him decide what he wants. For all we know the gentleman could be a multimillionaire looking for a low-cost way to cover a staggering estate tax for pennies on the dollar - a task life insurance is ideally suited to perform. He may be a wealthy individual seeking to shelter assets from liability by placing them in a life insurance trust. There are many reasons this person might want insurance. The most basic might be the desire to secure a legacy, and he may simply be investigating the possiblities.

Blasting the idea for him without giving any really useful information to the man is not particularly helpful. Perhaps giving him options and ideas as I have would be a more useful strategy when posting answers in the future.

Answer 4

Term just gives you insurance for the length of the policy. When the time covered is over, it has no value.
Whole life builds value in addition to the insured amount over time. Its like a savings account that earns a really crummy interest rate.
NO ONE need whole life insurance, not matter what the age.

Why does a 77 year old male need life insurance at all?

The only reason to have insurance is if you have dependents that need your income. Most 77 years olds are no longer earning an income, and have no dependents.

Answer 5

Penguin is correct.

First, you should go speak with a licensed insurance agent or a financial planner. A message board is a terrible place to receive financial advice because no one knows your specific situation.

Most insurance companies will not issue a term policy on a 77 year old. If they do it will be a 5 year term, meaning if you die within 5 years, your beneficiaries will get the money. If you live longer than 5 years the premiums go up --- WAY UP. This is why you need to talk to someone person to person - to determine the best strategy for you.

Answer 6

I can tell you whole life insurance is outrageously expensive. Best if purchased by a young person, not someone 77 years old. No benefit compared to term insurance. Term insurance for someone 77 should be just enough to cover the expense of a funeral. Period.

Answer 7

The above posts do a honest activity of describing the products. My difficulty is the question "it is better?" neither is "better." each and every has situations for which this is the superb utility. the reality is that maximum persons choose the two, for a form of motives. If this is a non everlasting choose, term is frequently the answer. If no longer, everlasting coverage is needed. a thorough diagnosis by using a qualified financial consultant can do away with the guesswork. additionally, basically because of the fact term coverage has a decrease top rate does not recommend this is low fee. The shorter the term, the decrease the top rate; yet once you have chose too short a term, the renewal top rate will possibly be astronomical. an entire existence coverage will in many situations initiate paying its own top rate out of dividends at relating to the twelfth-fifteenth year, ensuing in relating to a similar complete top rate outlay as a 30-year term, yet final in stress your complete existence. additionally, complete existence isn't your basically option for everlasting coverage, yet it is an entire new subject rely. See a financial consultant, no longer an coverage salesman.

Answer 8

Depends - what's the objective behind buying the insurance? Is it to leave money behind for someone, or to pay estate taxes??

In either case, at the age of 77 it's going to be EXTREMELY expensive.

Answer 9

whole, you are covered for however long you can manage the payments.

term covers you on a set period, like let's say 10 years or so. you pay that amount and that's it.

whole will encompass everything and is the most expensive insurance there is. I'd opt for term in your case since it will keep you covered for only when you need to.

Answer 10

For a 77 year old person, the life insurance prices may be high for both whole life insurance and term life insurance.

One type of coverage that is popular for people over age 65 is Globe Life Insurance. They offer you up to $30,000 of life insurance protection with no medical exam required. Globe Life is rated A+ Superior by AM Best for financial strength. They have been around since 1951 and have more than 2,500,000 satisfied policyholders in the U.S.A.

Globe Life offers you instant quotes and you can apply online for your policy in 5 minutes. To learn more - http://tcgtrk.com/click.pl?l=131&ca=3717&c=5676&t-subid=TL-777

Also, here is a complete explanation of the advantages and disadvantages of Term Life Insurance and Whole Life Insurance:

Term life insurance is designed to help people buy life insurance protection they need when they can't afford to purchase all permanent insurance, or when they only need life insurance protection for a specific period of time. Term insurance provides you with a guaranteed death benefit, but no cash value.

The life insurance premiums will increase at pre-determined intervals such as 1 year, 5 years, 10 years or 20 years. This depends on the type of term life policy you select. A term life policy is often the choice when your life insurance protection needs are higher for a period of time, then drop down to lower levels in later years, such as when your family is growing.

Term insurance can also be an effective way to provide supplemental coverage in addition to permanent insurance during years you need higher levels of protection, such as when your family and other financial responsibilities are beyond your current income.

In these situations, term coverage allows you to purchase important death benefit protection without going beyond your budget. Also, if the coverage is convertible (the coverage can be "converted" to a comparable permanent life insurance policy, without the need to provide evidence of insurability), you can get the coverage you need today — with the ability to purchase permanent insurance coverage in the future.

The Real Cost of Term Life Insurance

However, term insurance has its disadvantages. It isn’t right under all circumstances. Among its drawbacks, be sure to note the following:

You do have to "die to be paid." As unpleasant as that sounds, it's true. Term life insurance provides a death benefit only, for a specific period of time. So, if you outlive your policy period, there is no payout to your beneficiaries. When the term coverage expires, your protection ends, too. And, if you stop paying your life insurance premiums, the coverage ends. Period.

Here’s an example for you - Let's say you own a $250,000 term life insurance policy. You've kept the coverage in force for twenty years, and the policy expires at midnight on June 30. If you die at 11:59 p.m. on June 30, your beneficiary receives the full $250,000 in death benefit proceeds. However, if you die at 12:01 a.m. on July 1, your beneficiary receives nothing under the term insurance policy, since the policy has expired.

Purchasing term insurance is often compared to renting an apartment. When you rent, you get the full and immediate use of the apartment and all that goes with it, but only for as long as you continue paying your rent. As soon as your lease expires, you must leave your apartment. Even if you rented the apartment for 10 years, you have no "equity" or cash value that belongs to you.

There is the Very Real Risk of becoming uninsurable when the term insurance coverage expires. While many term policies are convertible to permanent insurance coverage, others may not be. And, even if the term policy is convertible, there are time limits. If the policy is allowed to expire, you may be required to re-apply for life insurance coverage, and prove insurability by taking a medical exam. If you are found to be uninsurable at that time, you will be without life insurance coverage.

Since premiums increase at each renewal, the long-term cost of term can be very costly. Many people buy term insurance coverage when they are in their 20s or 30s because it appears more affordable when compared to a cash value or permanent life insurance policy with the same death benefit amount. By the time they're in their 40s or 50s, the coverage seems a little more expensive, as the rate goes up. In their 50s, the cost may be comparable to the cost of permanent coverage. Finally, in their 60s, if not sooner, they may decide to drop the policy — not because they no longer need the protection, but because they usually can't afford it. However, the person who paid more for a permanent life insurance policy in their 20s may still be paying the same premium. That's why the term policy's conversion privilege is so important. This valuable feature is usually available in the first few years of the policy, and allows you to convert to permanent insurance without submitting evidence of insurability. Converting to a permanent policy lets you "lock in" a fixed premium, and your life insurance coverage can never be canceled, provided you pay your life insurance premiums.

The Value of Permanent Life Insurance

Cash value or Permanent life insurance is often the best long term solution for many people. The reasons:

Permanent life insurance provides you with lifetime insurance protection, provided you pay your premiums. Usually, once you’ve been approved for coverage, your policy cannot be canceled by the insurer. Regardless of your health, the insurance will remain in force.

Despite higher initial premiums, permanent life insurance can be less expensive than term life insurance in the long run. Many permanent life insurance policies are eligible for dividends, which are not guaranteed, if and when they are declared by the insurance company. Many companies offer the option to apply current and accumulated dividend values towards payment of all or part of your life insurance premiums. If dividend values are sufficient, out-of-pocket premium payments may be reduced after several years, yet coverage continues for your entire life. So, while life insurance premiums must be paid under both, the permanent and term life insurance plans, long-term out-of-pocket cost of permanent insurance may be lower compared to the total cost for a term life insurance policy.

Permanent insurance can eliminate the potential problem of future insurability. Cash value life insurance policies do not expire after a certain period of time. And, some policies contain guaranteed purchase options, which allow you to buy additional life insurance coverage at specified times, regardless of your health.

Cash Value Life Insurance builds cash value within the policy. This amount, part of which is guaranteed under many policies, can be used in the future for any purpose you wish. If you choose, you can borrow cash value for a down payment on a home, to help pay for your children's college education, or to provide income for your retirement. (Note: Borrowing cash value from your permanent life insurance policy requires the payment of loan interest and will affect your total policy values.) Also, if you decide to stop paying premiums and surrender or cancel your permanent insurance policy, the guaranteed policy values are yours.

I hope that helps.