• Karmella

    I understand all of that on a logical level, but I sometimes feel like term insurance is “wasted” if you don’t end up using it. Which I know is not rational, but I can’t help it.

    • Sally Aquire

      I can understand that feeling, which is why I like the idea of the Return of Premium policies as you’re guaranteed to get your premiums back at least.

  • gina

    I agree with you. I think term is the better way to go. Usually you are trying to insure your children, and likely they will not need the money once the term is up (because they will be grown). If you are concerned about leaving money for others when you are gone, you can probably invest more wisely on your own that in a whole life product–more money for your loved ones!

    • Sally Aquire

      I’m with you there. As you can tell from my post, I’m not in favor of whole life so I’d swing towards finding another investment option if that was your goal!

    • sabrina

      Yes! Yes! I do agree with you 100%. As the children go older and have their own family. As a parent we still care for them and the Grand Kids. Long Term is Good.

    • Mac

      The problem with your theory is this, say you get a 20yrs term with a face amount of $200,000 for just $45/month and you LIVE through those years, what do you think happen to the $10,800($45month x 12months=$540year x 20yrs=$10,800) that you would have invested? Do you think you get that money back? NO! So that would of been money WASTED. Now let’s say a day later after your term expired you go for your yearly physical and they diagnosed you with a Terminal Illness, that would result in you now being UNINSURABLE. Which mean your SPOUSE or CHILDREN would now have to pay for your FUNERAL using out of pocket expenses. So my question to you would be……do you think your wife or children would have say on average $15,000 in either their checking account or savings to write a check for your funeral and not change the way they live financially?

  • Emily D.

    I have life insurance through my employer, but have no idea what type it is. I guess I should look into that! The term insurance seems like a better way to go overall- if you’ve got enough savings by the time you retire to no longer require life insurance.

    • Sally Aquire

      I’d definitely look into that and see what type you’ve got!

  • Winston C

    Well, my dad has whole life insurance. He was supposed to stop paying premium last year, but thanks to the economic downturn, the stocks that Metlife invested with the collected premiums lost half of the value. So right now, he has to pay for three more years. It might be shorter once the economy recovers.

  • lisa

    term or whole life? just depends on when you want the policy to pay. if you want it to pay when you die, whole life is pretty much the only policy that can guarantee this. if you only need temporary protection and are on a budget, term may be the way to go. whole life is also a good plan for estate planning issues (for those that are concerned with estate tax), and those wanting to leave a legacy.

  • http://www.competitivetermlifeinsuranceexplained.com sandy

    I guess its more important to weigh the pros and cons for your family. For the better result of it. You have to talk it with the whole family.

  • http://www.seniortermlifeinsurancerating.com james

    I agree with these post policies with an investment component cost many times more than term policies. So many people choose term. great article of you

  • http://www.accuquote.com/ [email protected]

    For people who are discouraged by the â??no payout if you donâ??t dieâ?? condition of term life insurance, Return of Premium (ROP) life insurance is an attractive option.
    This type of life insurance policy guarantees the refund of your premiums in case you survive the term of the policy. An ROP life insurance policy may appear like an obvious choice, but is it really better than traditional term life insurance?

    Well, the answer is not necessarily. ROP life insurance is much more expensive than standard term life insurance. Now, if you invest the difference in the premium in another investment scheme, you will get a chance to earn returns on this money. So before you buy ROP life insurance, evaluate which option is likely to pay you a higher ROI.


  • Allan

    There’s a lot of confusion about term and whole life insurance. For anybody over 50 years old, they should buy only whole life because the rate is locked in for the rest of their life providing they keep their policy. Term is for younger people with young families or someone who is in the early years of a large mortgage. The problem with term for seniors is this; What happens when your term is up and you are over 65? Three things and none of them are good. 1) You don’t qualify because of health conditions 2) Premiums soar out of this world passing up whole life in cost in later years 3) You simply run out of options on term and must go to whole life way to late costing a fortune. If you have cancer, heart problems, strokes etc you go to a graded benefit which only pays the full face amount 2-3 yrs after the policy is issued. If you pass away before the 2-3 year wait, the beneficiary only recieves the premiums back plus interest. That is a disaster considering that a traditional funeral cost in excess of $10,000. My opinion is that I would rather pay a higher premium while I’m young to lock in the original age rather than have term for many many years and get slammed in my latter years in higher premium. Term policies issued might start out cheap but when you hit 65 it goes through the roof.

  • http://www.qualitytermlife.com/ QualityTermLife

    There can be a place for Whole Life. A commercial reason would be to insure a business partner or loan. And perhaps for people who are well-off, it can be a convenient option bequeath a charity, pay estate taxes, or leave a legacy to heirs. These folks already have their other investments in place.

    But that is not most people. The typical profile of a term life insurance owner is someone who is a family breadwinner and has minimal savings. It is critical protection. If you are in this category and aren’t insured, get insured now! (BTW, insurance through work is almost always inadequate).

    Choose Term Life Insurance for covering specific needs that will disappear with time, such as: Income replacement, Financial security for dependents, Mortgage protection, College funding, Final/burial expenses. Ideal for young families.

    You can use an online quote engine to compare term life insurance prices. There is one at at Quality Term Life where you can look at available rates from nearly a hundred companies. Great needs calculator, too, so you can estimate how much coverage you should get.

  • akbarsheikh

    In spite of knowing the difference between term and whole life, people still get to a road block when it comes to buying a life insurance policy. First thing they need to be clear is what financial purpose they are trying to fulfil.

  • Carol Xu

    Whether you buy term or whole, the age you are when you buy it has the biggest affect on your rates. So, youngsters! Go out and buy life insurance before it’s too late! Life Ant has the best rates I’ve found.. $44 premiums for a 2 million policy. Select Quote is also OK. Good luck guys!

    • Michael Lewis

      Thanks for writing. As you pointed out, someone looking for coverage should get quotes from several companies to be sure they are getting the best deal.

  • Johnflag

    My wife and i are 70+ years of age and don’t have life insurance. At our age which one would be better , Term or Whole?

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