Life Insurance ,,what to get...Term?Whole life

[AsphaltAnihil8r]

I was thinking of Whole life for my wife about $1700 yr(will be less his figures were if she was older)
and I was thinking of Term for myself,,like $38 month,coverages are for $300k.
I was thinking of doing the Whole life for my wife since she is younger and can lock in a low rate,It would be like a savings plan also..
Please give your opinions ..
Thanks Dennis

 

[tracy]

Having been down this road when I was younger, here is what I learned.

Whole life insurance is no bargain. Agents push it as a savings tool, but there are far better investment/savings products available.

My advice, and I think most financial planners would agree, is to by term or premium return term insurance from a grade "A" rated company.

Check into premium return term insurance. For example on a 10 year term you can recoup your premiums that you have been paying. So example; your $25 per month over the 10 years is all refunded.

Also, the older you get the less life insurance you may need if all goes to plan and you accumulate more assets and less debt.

Go to a few financil planners and talk to them. Good luck

 

[tracy]

Having been down this road when I was younger, here is what I learned.

Whole life insurance is no bargain. Agents push it as a savings tool, but there are far better investment/savings products available.

My advice, and I think most financial planners would agree, is to by term or premium return term insurance from a grade "A" rated company.

Check into premium return term insurance. For example on a 10 year term you can recoup your premiums that you have been paying. So example; your $25 per month over the 10 years is all refunded.

Also, the older you get the less life insurance you may need if all goes to plan and you accumulate more assets and less debt.

Go to a few financia planners and talk to them. Good luck

 

[DKREDT]

One of the questions you need to ask yourself is what will the insurance be used for?

Do you have kids that you want to make sure are covered financially if something would happen? Mortgage etc? If so, you probably only need coverage for 25 or 30 years.

If you buy term and can diligently and smartly invest the difference, your investments should be able to outperform the cash value performance of the whole life policy.

Get a couple people's takes on it.

Keep in mind that an agent makes a hefty commission on a whole life policy.

HTH

Joel

 

[Murt TTA]

Dennis,

I work for a top rated insurance company so I might be able to help you out a bit.

Whole life is a great product if you need the coverage for your whole life, thus the name. Whole life is no means the best investment product. Whole life also begins to accumulate a guaranteed cash value, and about 12-15 years on average, your cash value meets what you have paid in premiums.

Term insurance is great for a younger family who might not have alot of cash flow, but they have a large insurance need. Many larger companies offer 20 and 30 year term at a very affordable rate. Take a peek at the premiums when the 20-30 year terms are up, they are sky high, nobody can afford it. Term insurance is the biggest profit maker for insurance companies an average of 2.5% of term policies are actually cashed in. So if you have a mortgage, children, or a gap in income between spouses you probably have a large insurance need.

You might hear about "buy term and invest the difference", this bascally means buy term and spend the difference, 90% of people will not invest the difference, they spend it.

Also are options of variable universal life (VUL) that combines life insurance with investments, such as mutual funds, and the cash value fluctuates along with the performance of the funds. This is a higher risk investment, but can bring large returns.

Flexible Universal life might be a possiblity, where u could variate the amount of money you put in there...

Alot of different options available to you. The first thing you need to do is determing the amount of insurance you need, and then determine your budget and investment objectives. Almost always the best fit is usually a combination of term insurance and permanent insurance.

Send me an email with the companies you are considering and the products, if you want, I have comparison software that will look up everything on the company (ratings, products, ETC.) . If you have any other questions i'd be glad to help.

Good Luck!

~Murt
casey38boost@yahoo.com

 

[Little6pack]

I had both types & was displeased.

If you are employed som compaines allow you you to buy
more coverage.
A lot depends on age, & if you have family.