Whole Life Insurance
vs. Term Insurance
The age old debate in the life insurance industry is which is better whole life insurance or term insurance. Well experts all over the world view this differently, but since I am writing the article I will give you my opinion.
- Insurance – Term Life provides fantastic coverage at a low premium. Level life insurance coverage is a very important factor in my book and also the ability to buy a higher face amount with the premium being smaller than a whole life policy.
- Insurance – Universal Life is a great way to make sure that you have coverage for your entire life. It is more expensive than term but not near as high as whole life insurance. I like the train of thought that encourages people to purchase both a universal life policy and a term life insurance policy. It is said that a term life should be in place to pay off your debt and put your kids through college and have it expire when the house should be paid off and kids out of school. Then you have a base universal policy to provide income or an inheritance after you are gone. Many people disagree with this thought process but I really think it is an interesting concept.
- Insurance – Whole Life is an alternate way to have a life insurance policy and savings plan in one. I personally am not a big fan of these policies, but I do understand how they can be useful in certain situations. However, I think your average guy who is purchasing a policy should consider a term or universal policy. Whole life insurance builds cash value which is nice, but I do not see paying $3 to get $1 invested for me. That doesn’t pass my 3rd grade MS math as a good deal.
Again Whole vs Term Life insurance is something that people have disagreed on for years, but as long as you spend a little time comparing rates and trying to really think about what your insurance needs really are you will be ok.
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