March 17, 2014
What is the difference between a whole life insurance policy and a term life insurance policy? Why should you care?
What is the difference between a whole life insurance policy and a term life insurance policy? Why should you care?
A whole life policy is a mix of a horable investment and a very poor life insurance policy. Term life is just the normally cheep life insurance policy. The costs of a whole life policy is so much more than a term life plan that you will not be better off getting it. You should care because you shouldnt pay more than you have to for something. You can get a term life plan from term4you and accuquote ..com for a cheep price, you should only get term life plans.
Right again, Garrett. Let’s review.
Whole life is advertised as part investment/part insurance. The reality? You end up with not enough insurance AND a poor investment due to the high yearly fees (fees are used to pay the life insurance agent his/her commissions).
Term life is pure insurance. It is cheap and because of that, you are more likely to purchase the amount that is needed for the people you will leave behind.
Now what? (1) Stay away from whole life insurance and that means avoiding the life insurance agent and his pitch. (2) If you need life insurance (someone relies on you financially to live) buy term life (either annual renewable term or a level term policy) at a clearinghouse on line such as term4sale.com or accuquote.com. (3) If you have that crappy whole life policy, consider dropping it AFTER you have picked up a good term policy. Take the cash value from your “investment” and put it toward debt, your emergency account, and/or investments (no-load index mutual funds). Take control!