What's the best type of life insurance to buy?

Question

Is term better than cash value? or vice versa?

Answer 1

As any financial expert would say, term insurance is the best. Why is that?

1) Very low rate per unit (unit = $1,000 coverage)
2) Gives you freedom to save money wherever you want such as bank accounts, mutual funds, retirement accounts, education funds, etc.
3) Lets you rent wealth (term insurance) while accumulating wealth (investing the difference).

I would be careful when someone advise you to buy a very short term policy such as 1 year, 5 year, and even 10 year term. These policies are very very cheap in the beginning, but when you renew it over time, it becomes very expensive. You should buy long term policies such as 20 year, 30 year, or even 35 year because you are going to need that much time to build wealth. I highly suggest you invest in mutual funds because they are professionally managed and the manager has only one goal in mind, which is long term growth.

Answer 2

Term is the best value. What you are buying is the actual insurance. What the insurances salesperson is going to try to sell you is Whole Life because they make a ton of commission. Stick with Term. Don't ever buy investments from an insurance company.

Answer 3

Basically some people say purchase a term life insurance policy and invest the difference for your retirement or your kids college funds, etc. The problem is that some people's good intentions about investing that money never happens or they choose the wrong type of investment vehicles then before you know it 10 or 15 years have gone by and they are left with a term premium they can no longer afford (most term life premiums are only guaranteed for the first 10 years) and virtually no retirement investment, mortgage payment fund or college fund. In addition no one can guarantee that you might not become disabled therefore losing your income and ability to save--you can purchase a disability waiver on most life policies to provide that your premium payments & therefore you policy is continued if you are disabled due to illness or accident.



Also note that with a Universal Life Policy you can borrow from the built up cash value and if you have been declared to have a terminal illness you can collect up to half of the face value from the insurance company (if your policy has a special endorsement attached) or you can have a viatical company purchase the policy from you.



My advice to most of my clients--buy a good Universal Insurance policy with a term rider so that you have all your bases covered and enjoy every day of your life--you deserve it!



Good Luck

Answer 4

As others have said, term is the way to go. It is much cheaper and gives you "pure" insurance, no "filler".

However, if you can't save a dollar if your life depended on it, then an insurance policy with a savings element may benefit you. They are known by different names but some general terms are universal life or whole life. But understand that you'll pay a hefty fee to pay for the insurer to manage your savings for you.

Answer 5

The best type of life insurance to buy depends on your own personal situation, and your goals for the inssurance.

It is tru that many young families on a budget may buy term life insurance for 10, 15, 20 or 30 years to protect their family for several reasons:

1. Term insurance can provide rates and coverage that are guaranteed to remain level (the same) for the entire period of the policy. This is called Level Term Life Insurance.

2. Term life insurance offers you the opportunity to purchase the maximum amount of protection for your loved ones at the mowest cost.

3. With term insurance you pay only for the insurance protection, there is no investment. No cash value builds within the policy.

If you need life insurance to provide protection for a specific number of years, term insurance may be a good option. If you need life insurance protection for your entire life, whole life (permanent) insurance may be right for you.

The thing is, many people will have saved enough money to pay for their final expenses and burial costs by the time the are 75 years old. So, permanent life insurance may not be necessary for them.

You may want to compare all the benefits at drawbacks to Term life insurance and Permanent life insurance at http://www.term-life-online.com/term-life-insurance-vs-permanent-life-insurance.html

I hope that helps! Best of luck to you.

Answer 6

Please read. Look at your results. The answer is Term, only. Someone said above that term is usually only level for the first 10 years. Most agents are trained to sell short 'term'. At renewal time the cost goes up and agents make more money converting it to cash value down the road. It all depends on what the agent sold. The term can be determined simply by how long you need it. My personal life insurance is 30 year level premium term. They now offer up to 35 year level term.

Look up any financial guru, Suse Orman for instance, they say Term.

Hope this helps.

Answer 7

Never combine your life insurance with your investments. Get term insurance.

Answer 8

For free insurance quotes

Answer 9

It depends on your needs.

If you are looking to cover a mortgage in event of your death, or to provide income replacement, you can probably get the coverage you need at the lowest price using a term policy.

If looking for lifetime coverage or to cover estate taxes, etc.. then a permanent lifetime policy may be best.

Answer 10

LEVEL TERM!!!!!!

Never buy insurance combined with an investment. You will pay more and get poorer performance.