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 .
The cheap life insurance may not be so bad after all . Term Life insurance is the only way to go . Like auto insurance term life insurance is "pure" life insurance . When you purchase auto insurance there is no investment portion . Auto insurance is not combined with any type of investment . Nothing complicated about it. Term Coverage = Low Cost Life Insurance = Pure Life Coverage .
Keep in mind that term life insurance offers the greatest amount of life coverage at the lowest cost
Although labeled the cheap life insurance it provides families the most value for each dollar spent. Life coverage makes sense when you have dependents / children that depend on your income (usually less than 30 years).
People will say "But it is only available for less than 30 years!"
Do you need life insurance forever? Is it important to you to continue to spend money on a product you no longer need?
With the higher chance of death as people age would you think life insurance rates become cheaper or more expensive?
More costly. The older the person is the higher risk the person may be at correct? With whole life insurance, higher risk = higher monthly premiums .
But my agent promised me that the life insurance premium will stay the same for the rest of my life!
In the beginning, the instant life insurance premiums you pay on your life insurance will remain constant but will increase dramatically as your risk increases with age .
Another term that sounds great in a whole life policy is "Cash Value" . Doesn't that mean something better than cheap life insurance without an investment cash value?
The amount of cash value you have in your whole life insurance policy is never yours. You can only borrow from the cash value portion of a whole life insurance / permanent life insurance policy . If the breadwinner passes on the remaining family receives NONE of the cash value and only the death benefit. Insurance company keeps the 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 . If you hold a whole life insurance policy and you hit the age of 55-60 keep a close eye on your cash value. It will start to deplete due to higher costs to insure you.
Whole life insurance policy owners, check your policy each year . You will start to see decreasing amounts in your cash value as you get older because it is being drained by the higher cost of insuring you .
Eventually the high cost of insuring you will eat up all your beloved "cash value" and you will see your monthly life insurance premium payments skyrocket unbelievably high and you will be asking yourself what happened .
By that time the life insurance agent who sold you that whole life insurance policy will be long gone and your life insurance company will care less if you cannot afford the new high monthly premium payments that will continue to go up each month .
At ages over 65 insurance companies deem you as a high risk of dying and you will need to pay a huge premium in order to insure you . The whole life insurance company could charge you higher premiums or have you cancel your own policy .
Check the cost of insurance table for ages 65 and above. Ask your agent . After a certain age the cost of insuring you skyrockets.
Stick with "Cheap Life Insurance" or 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.
If the income provider passes on what will happen to the children?
The spouse and dependents / children will no be able to live the life that they are accustomed to without the regular income coming in previously. The family's standard of living may drop without that income source .
Were the income provider pass on how much would the family need per month to survive?
Term life insurance, although termed cheap life insurance is solid value
With whole life insurance being the more costly life coverage it is certainly not the best deal.
Term Insurance is the best type of insurance to buy if you plan on protecting your children and spouse in the case of your death .
Term insurance is only required for a set period of time to protect your children because in less than 30 years they will not be needing your income and be more independent . After they become financially independent then you will no longer need life insurance to protect your children .
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 .
There is an additional strategy that we wholeheartedly recommend and implore you to take . 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 . Compare the life policies and decide on which life quote will suit your family best .
