Some may believe that because whole life insurance is the more expensive life insurance it may be better .
The truth is that when looking at instant life insurance: whole life insurance vs term it is term life insurance that is the better coverage for everyone .
Looking at the details the low cost life insurance isn’t that bad after all. The best type of coverage is term life insurance . Although it is considered the “cheap life insurance” you need to understand that like auto insurance it is pure insurance . There is no investment portion when buying an auto insurance policy. Auto insurance is not combined with any type of investment . It’s clear cut . Cheap Life Insurance = Term Life Insurance = Pure Life Insurance Coverage.
Term Life Insurance gives families the greatest amount of life coverage at the cheapest price
Term life coverage gives you the most value for each dollar of insurance . Life coverage makes sense when you have dependents / children that depend on your income (usually less than 30 years).
There are those who will state that term coverage is only available for less than 30 years
Is life insurance needed for the rest of your life? Do you want to continue paying high life insurance premiums for the rest of your life?
As you get older does life insurance become more expensive or cheaper?
More expensive . The older the person is the higher risk the person may be at correct? The higher the risk the higher your insurance premiums will be if you have a Whole life insurance policy .
Some insurance agents that sell whole life policies will tell you that the monthly premiums will stay the same forever
Initially the instant life insurance premium will stay the same on a whole life insurance policy but remember, higher the age the higher the risk = the higher the cost to insure you .
But I have “Cash Value” with my insurance policy . Doesn’t that mean something better than cheap life insurance without an investment cash value?
When you are building cash value that portion is never actually yours . The cash value can only be borrowed. If you die then the family receives the death benefit and NONE of the cash value . The insurer gets to keep your cash value.
Also, in your first year of paying monthly whole life insurance premiums you receive NO CASH VALUE .
You will be paying whole life insurance premiums for years but as your risk increases the cost of insuring you will eat into your cash value and sooner or later it will be depleted. Only then will your monthly premiums jump dramatically . Your monthly premiums are “set” but it costs the insurance company much more to insure you so they start taking from your cash value .
If you own a whole life policy keep a close eye on your policy. With a whole life policy and the high cost of insurer older people you will see you cash value be drained.
You will be asking yourself what happened when your “cash value” is depleted and your monthly whole life insurance premiums skyrocket .
During that time the life insurance agent who sold you the policy may or may not be with that company and you will be left with no life insurance and no cash value .
They would rather not insure you anymore because the risk is too high at ages over 65 . Whole Life Insurance companies don’t care if you can no longer afford to pay the premiums. If you are at a higher risk they would rather have you cancel your policy to avoid paying the death benefit.
Check the cost of insurance table for ages 65 and above. Ask your agent . After a certain age the cost of insuring you skyrockets.
Instead of purchasing a whole life policy stick to term life insurance . After determining the correct amount of life insurance your family needs compare term life insurance quotes and choose the right term policy.
Don’t think about attaining the most amount of life insurance you can. Ask yourself what you actually need the life insurance for
Buying life insurance is NOT to make your family rich. It is to protect the income that provides for the dependents / children in the family.
Will the dependents/children be able to survive if something happens to the income provider?
With the death of the breadwinner it is a serious financial loss and the rest of the family will no longer be able to survive . The family’s standard of living may drop without that income source .
What monthly amount is needed each month to cover monthly family needs?
Even though term life insurance is termed low cost life insurance it is worth every penny
Whole life insurance, the more expensive life insurance may not be the best deal after all .
If your purpose to buy life insurance is to protect your spouse and kids from financial hardship in case of your loss then term insurance is the only way to go .
In less than 30 years your dependents / children will finish school and start working to create their own income to support themselves. Life insurance will become less of a factor when the children grow up and become more financially independent.
At that time why would you need life insurance any longer?
If it is to protect your spouse or your own parents (if you are supporting them) from your loss then that is acceptable but preventable .
It is our belief that people take an additional step. That is to become self insured through the savings of purchasing the “cheap life insurance” or Term life insurance .
Determine the amount of life insurance your family needs, do instant life insurance quotes comparison and purchase a term life insurance policy .
Compare life insurance quotes from the best life insurance companies available in your state at BaseQuotes.com . Take the time to compare life insurance quotes and choose the policy that suits your family best .
