Which would make more sense to buy? Term or whole life insurance?

Hi! It sounds like you are just starting your research into life insurance. I wish you luck.

Term life or whole life (or a combination of both) may be right for you. There are several things to consider before you make a decision:

1) Your age
2) Why you want the coverage - your reason
3) How long you need the life insurance protection
4) What you can afford
5) How much life insurance you need

These are a few of the things to consider before you buy. One thing is certain - you want to take your time, research plans, compare rates and benefits, and choose a plan that fits your needs and your budget.

By comparing plans online you can save hundreds of dollars per year on your policy. Why? Because the internet makes it easy for people to get quotes and find the lowest price. So, insurers need to lower their rates in order to compete for your business.

Term life insurance offers you the maximum amount of protection for the lowest price. However, term insurance is only for a specific number of years - usually 10, 15, 20 or 30 years. If you outlive the policy term, your coverage expires. Many young adults and families purchase term because it gives them the most coverage that fits their budget.

If you want life insurance to last your entire life choose whole life insurance. Your coverage remains in force your entire life, as long as you pay your premiums.

The most common type of term insurance is level term life insurance. Example: $100,000 20 year level term life insurance policy - the rate remains the same for the entire 20 year period. If you die during the policy term your beneficiary receives the $100,000 death benefit. If you outlive the policy term, the policy expires and you would need to buy another policy at higher rates based on your age at that time, if you want to continue coverage. However, you may or may not qualify for coverage because of your health - or the premiums may be too high to afford.

There are many pros and cons to term life and whole life. Go to http://www.term-life-online.com/term-life-insurance-vs-permanent-life-insurance.html to learn more.

Also, make sure to get quotes from a quote service. That way, you enter your info once and they give you instant quotes from the top life insurers nationwide. This makes it easy for you to compare plans and prices.

Also, make sure to consider the financial rating of the insurer you choose. Your quotes should show the financial rating. This gives you an idea of the financial strength of the insurance company - to make sure they are financially sound and can pay their claims. Usually it's good to choose a life insurer with at least an "A" rating from A.M. best.

If you want to learn more about life insurance go to http://www.term-life-online.com

Hope that helps! Best of luck to you.

Whole life. Term is only for a specific period of time. example you can get policies for 10,15,and 20 years and so on. That's no good if you die in 30 years.

First decide if you have a genuine need for life insurance. Many people dont

Whole life insurance is a scam. Check out Dave Ramsey's "Total Money Makeover". You'll see what I mean.

Whole life. The younger you are the cheaper the premium. Yow will automatically lock into that premium at your attained age and it will never go up. The policy will create cash value for you and will be valid until age 100 with most whole life polices. You can borrow from it and when you get older can even cash the policy in and receive the cash value at that point in time. Say you feel you don't need it anymore at age 65 but would like the cash value to use for other things. You can do that.

Term insurance is only good for a certain period of time. The death benefits do not increase as does a whole life policy and you do not receive cash value with the policy. The term can run for 5, 10 20, 30 years but once it runs out, you will have to re-qualify for renewal.

I'm a licensed insurance agent in Florida. Talk with a local agent who is licensed in this field and get additional information from them. Hope this helps. Good Luck

TERM Insurance may be the way to go IF THE FOLLOWING APPLY:
1 - you are older & just want the coverage, AND
2 - you do NOT need to withdraw money from your policy.
3 - If you only need coverage for a specific time.
4 - If you are buying the coverage for a Business Partner.

UNIVERSAL LIFE may be the way to go OF THE FOLLOWING APPLY:
1 - You are younger
2 - You may need to pull money from your Life Insurance policy later on.
3 - If you are buying this coverage for your child.
((I think that - sometimes, some policies will reach a point where they policy pays for itself, after you make a number of payments))

Good luck

whole life is the way to go......some policies offer loans and dividends at maturity, however if you're older then term is less expensive.

Depends on your age.If you are younger, term.But remember with whole life you have cash value later and can borrow out of it.

I agree with Dig ... talk to a local agent (or more than one). Your insurance needs are very complicated and tough to manage yourself. Your needs change over your lifetime ... so does your health.

I find that most people will do well with more than one policy. If you have children, some of your insurance need will disappear when they leave the nest. Same for when you pay off your mortgage and other debt (as long as you don't move to a more expensive house -- which many people do).

Keep in mind that 97% of the term policies NEVER pay a claim. The insured either outlive the term or drop the policy. Many of these people still have an insurance NEED.

It is very tough to answer your question unless you want to post all of your personal financial information on line - income, current savings, debts etc.

Go talk to a financial pro!

Whole life will cost you more money but if you keep it you will have permanent insurance that one day will have paid up dividends and then you will not have too make premium payments when you are older and on fixed income.If you buy term the insurance ends when the term ends and at that time you will be older and less healthy and it will cost more for new insurance.

I would say whole life insurance. The sooner you buy it the cheaper it is. Also you don't have to worry about having to get another policy later in life. A lot of times when you buy auto or home insurance the company can quote you on whole life insurance as well and it can be super cheap. I actually have 3 life insurance policies and I pay like $30 monthly for all three!
That's my take on it, but it also depends on your situation.

Term. Why? Because whole life is supposed to be used as an investment vehicle. It is NOT a good place to put your extra cash. If you want to invest, invest but do it with a fund or stocks or something else that you control. If you really need life insurance get the lowest amount you need right now. This depends on your situation. Do you have kids? Do you work? Are you married? Etc. Don't let them talk you into an investment plan. Check out what Suze Orman says about it online.

Term is usually the best way to go in most cases. The premium may go up as you age, but you are paying for pure insurance only, not a low interest savings plan.

Whole life better if you think you'll have a long life

The important thing is that you get the amount of coverahe your particular situation calls for. It depends on your need and your financial situation.

Term will get you the most coverage for the lowest cost right now. But it is for a stated period of time (between one year and typically 10 - 20 years) and will dramatically increase in price as you get older. You must also reapply if the coverage is still needed, which means your health still has to be decent.

Whole Life -- or any permanent coverage will cost more, but the premiums will remain level over your lifetime and you will build some cash value that gives you some options in the future (borrowing, withdrawals or loans, cash for college or a home, retirement, etc.)

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