Is Term Or Whole Life Insurance Better?
Posted January 17, 2010 – 4:19 am in: term life insuranceAs others point out, it depends on your goals. Just looking to protect your family against your premature death while children are dependent? Then a low-cost term life policy spanning just the years then children are minors would probably be enough. If you are concerned about what will happen later in life, if a child or spouse becomes disabled, if you divorce and remarry, or if qualifying for term life is no longer possible or affordable, then whole life may be the answer, since it never expires and the premiums do not rise regardless of the policyholder’s age or health.
Tags: Better, Insurance, Life, Term, Whole
7 Comments
Whole life probably since the premiums don’t go up like term will.
WHOLE LIFE
* Permanent protection
* Fixed premium
* Fixed death benefit
* Fixed cash value
* Earnings generated by the policy are not taxed while the policy is in forcehttp://www.aldoi.gov/Consumers/LifeInsTy…
it depends what u r looking for. term insurance is for a specific term ie to retirement age or what ever age is specified, and the premiums are only paid for a specified time, if u cash the policy in u will not get anything back. whole life policy is that whole of life, premiums are payable till u die but ur covered till whatever age u die and there is also a value on the policy if u want to cash it in after a certain number of years.
It is best to talk with a qualified agent to determine what is best for you. With term you get more coverage for the same amount of premium, because it does not have a saving that whole life does.
To Sancira:
There is term insurance out there with fixed premiums as well, with guaranteed benefits for the duration of the policy. I know because I’m currently shopping around for life insurance.
That’s like saying, is a circular saw, or a jigsaw better?
Answer: it depends on what you want it to do.
FIRST set the financial goals, THEN find the products/methods that best meet the goals at the cheapest rates.
I CAN tell you, that for MOST people, term insurance and investing the difference will meet most goals cheapest. HOWEVER. It’s definately not a one size fits all thing, and there ARE situations when WHOLE LIFE is the best thing for the goal.
So you have to set the goal, THEN evaluate the products.
In the vast majority of cases, term insurance is better. Only time I recommend a client get a whole life policy, when they need insurance, is when there current term policy allows it and they have an uninsurable condition that will exceed the term.
Talk to someone directly and get the facts from them.
It depends on your goals, cash flow, and cost of money.
For most people, term is a more suitable solution.