I would like to know which would you recommend that I get, Term Life Insurance or Whole Life Insurance?
Mike
Scottsdale, AZ
Good Question,
The debate of whole versus term life insurance has been going on for quite a while. There is no absolute right or wrong in this debate regarding life insurance. It will always depend on your paying capacity and individual needs as a person. Both have their own benefits and their setbacks.
For term life insurance policy, you are insured from death and your beneficiaries will be given an amount of money if you die within the term that you are covered. Premiums are generally lower at the onset but increase as you renew the term life insurance policy. The downside of term life insurance, if you don’t die within the term of your insurance, you will get no cash values at the end of the term if you will not renew.
With whole life insurance policy, you are insured for the whole of your life. However, the premiums may seem costly for the first few years especially if you’re young, but as you climb the corporate ladder the burden will lighten as you will most likely be paying for the same premium for the whole of your term. Also another good thing with whole life insurance is, depending on the specifics of your policy, you may be getting cash values in the form of dividends in the later years, which you can get or use to pay your premiums.
My advice to you would be to talk to a term life insurance agent who can help you assess where you will benefit the most.