which is the better option for life insurance, whole or term?

Answer 1

Term insurance is always the best choice, especially when you invest in tax-deferred accounts such as IRAs, 401k, and so on. That way, if you die during the term, your beneficiary will get the death benefits and your investments.

With whole life, they are very expensive products. While cash value does grow tax-deferred, you lose the cash value when you die. If you ever want to use the cash value, you have to borrow and pay it back.

Today, all financial experts will agree with me that term insurance and investing the difference is the best way to protect the family. However, life insurance agents will say that term sucks and cash value life insurance are better.

Answer 2

Here is a tip. Look for a company that offers both and that has a convertability option. Here is the deal: you know you could pass a physical now, but what about in 20 years when your term policy expires? Having guaranteed convertablity means that if your health goes south, you can still have an option of maintaining coverage for your dependents for the rest of your life. Life insurance is a bad investment, but investments are bad life insurance. Both are pivotal in a quality plan. As for the ever present term vs. whole life argument, while each clients needs are different, if we located the top 5% of wealthiest Americans and asked them what they had for coverage, they would say whole life. Do you think they might know what they are doing?

Answer 3

Term is good for a period of time, usually when you've got a mortgage, kids, and bills. Term is cheap and is there to make sure that your family and things are taken care of during that covered period. Whole life is there to take care of final expenses when you pass away. (funeral expenses, probate, hospital costs) Things of that nature. Whole life policies should usually not be more than 30k at most because they will also build cash value and usually make the face value higher. Life insurance reallly just depends on your situation.

Answer 4

Ask yourself how much life insurance do you want to have after you retire and pay off your house. Thats how much whole life insurance you should have. The rest should be term insurance.

Answer 5

finished existence is greater effective by way of fact it extremely is used to take out loans by way of fact the fee of the coverage will improve. in case you circulate with a mutual existence coverage plans, then you certainly may additionally earn dividends which could improve the fee or help shrink the fee of the charges. If money is a subject outstanding now, you will get a term coverage which will aid you exchange it to finished existence. only bear in techniques that the fee of the charges are per you age once you're taking out the coverage, so the longer you wait, the better the fee. talk to an agent approximately your objectives and that they are able to help you're making the superb decision. A term coverage is like paying hire. it extremely is yours for a special time as long as you're making the money. while the term is up, in case you do no longer renew on the recent fee, then it extremely is performed and you get no longer something. an entire existence coverage is like possession. by the years it builds fairness so which you are able to use while you're nevertheless alive. And in some unspecified time interior the destiny, it extremely is attainable to be all paid up and thoroughly yours. *** in the event that they have been given much less back it extremely is by way of fact the utilized the choice to take out loans. Duh! How bout each and every of the wasted money you put in while your term expires? you don't get that back. in case you now no longer pay for finished existence, it has a renounce fee per what you put in. acceptable extremely in all probability slightly of the two. even though it relies upon upon what your guy or woman difficulty is.

Answer 6

term is cheaper but you cant say its better in every position, i would love to be able to get whole life insurance, i want it because its permanant,not for the savings, but my health isnt the best so i cant get it, at least not for any reasonable amount right now

Answer 7

Term, IMO. Of course, before you buy insurance of ANY kind, you need to have a GOAL. What do you want this product to DO for you, and for how long? See what meets your needs, not the other way around!

Answer 8

term, if your over 30 years old, whole life if your younger

Answer 9

Definitely term. Whole life should be outlawed.