Welcome to InsuranceForums.info!   

Advertisments:


Sponsor Links

Affordable Pet Insurance
Travel Insurance Comparison


What Is The Difference Between Whole Life And Term Life Insurance? Which Is Better To Have?

Insurance & Special Deals for Seniors

What Is The Difference Between Whole Life And Term Life Insurance? Which Is Better To Have?

Postby Ronit » Sat May 06, 2017 7:32 pm

The difference between term and whole life is as follows:

Term Life gives you just plain insurance - no interest or dividends etc.

you can buy 5 year term - 10 year - 20 year etc. but at each renewal your premium will increase.
Most Seniors find it too expensive when they reach 65+ because after paying premiums all their life - they have no insurance when they need it the most.

Whole life is insurance for all your life until you reach 100 years old.

The premium stays the same - a little more expensive in the beginning but often the cash values can be used to pay the premiums in the latter years, once they have accumulated at a decent rate.

The decision to buy one or the other is entirely up to you - although some agents push for one or the other.

When I was an agent I would present both types of plans and then sit back and let the client make his/her own decision.

For myself I have a Universal Life with a GIA - Guaranteed Investment Account that gives me a good % of interest on my money.

I pay a certain premium - lets say $30. a month and part of this $30. payment goes towards the cost of insurance and the rest of it goes into a money market account that earns compound interest.

If you have a really competent agent he/she will explain everything in plain language for you to understand.

One way or another insurance is a good deal.
It helps prevent long term poverty.
It is an unselfish act to provide for the ones you love while making a bit of a financial sacrifice.

Also business insurance is also a good investment from the point of view of unselfishness - you provide for your company and its employees and its partners even after you are gone and cannot contribute yourself - your insurance $$$ help your business continue on.
Ronit
 
Posts: 52
Joined: Wed Jan 08, 2014 6:08 pm

What Is The Difference Between Whole Life And Term Life Insurance? Which Is Better To Have?

Postby Honon » Sat May 06, 2017 8:18 pm

The best will depend on your needs.
Whole life is only payable when the person dies.

Term life has an option to cash it out at some point in the future.
You will not get the entire insured amount if you cash it out.
I believe you only get what you put in.
Maybe interest depending on the company.
Sometimes it can be cashed for college, sometimes upon retirement.
It is a nice safety net if you think you will need it later.


However, the return is going to be different (how much you pay versus how much you get if the person dies) for these two types.


The only person who can tell you what's better for your situation is your insurance agent.
If you have a good one, he will ask you lots of questions before trying to find a policy that suits your needs.
Honon
 
Posts: 44
Joined: Sat Jan 18, 2014 3:31 pm

What Is The Difference Between Whole Life And Term Life Insurance? Which Is Better To Have?

Postby Lorah » Mon May 08, 2017 12:41 am

Term has an expiration date.
Whole life doesn't, but you pay a lot more for it and get an infinitesimal return on your money for the difference.
There are (or were) much better investments, but if you don't have the discipline, whole life might be better than nothing, or at least as good as it.
Lorah
 
Posts: 54
Joined: Tue Jan 14, 2014 11:06 pm

What Is The Difference Between Whole Life And Term Life Insurance? Which Is Better To Have?

Postby Dontae » Wed May 10, 2017 1:08 pm

I recommend one to try this web site where onel can get quotes from different companies: http://COVERAGEQUOTES.NET/index.html?src...

RE :What is the difference between WHOLE LIFE and TERM LIFE insurance? Which is better to have?

Follow 5 answers
Dontae
 
Posts: 50
Joined: Sat Mar 01, 2014 6:24 pm

What Is The Difference Between Whole Life And Term Life Insurance? Which Is Better To Have?

Postby Douglas » Fri May 12, 2017 2:31 am

I suggest you to visit this internet site where you can compare rates from the best companies: http://cheap-insure.info/index.html?src=...

RE :What is the difference between WHOLE LIFE and TERM LIFE insurance? Which is better to have?

Follow 6 answers
Douglas
 
Posts: 73
Joined: Wed Jan 08, 2014 12:49 pm

What Is The Difference Between Whole Life And Term Life Insurance? Which Is Better To Have?

Postby Guifford » Sat May 13, 2017 8:24 am

Which is better depends on why you what insurance.


Whole life policies last for as long as you live and will pay the principle amount whenever you should die. You pay premiums which increase the older you get, a portion of which accrues to "cash value" and if survive to a certain age, the policy lapses and you collect the Cash Value. Suppose you take out a whole life policy at age 30 good through age 70. But when you are 65 you decide to cancel and receive the cash value, then you can do that.


Term life is different from whole live because you purchase the policy for so many years. Often, term insurance is sold as "mortgage insurance". First, no cash value accrues. But, the premium stays the same for the life of the policy but the payoff amount decreases every year, in line with what it would take to payoff the mortgage.


The main thing abour whole life and term is that whole life accumulates a cash value and term does not. Term is less expensive.


Cold Grey Ash - oops you got it backwards.
Guifford
 
Posts: 53
Joined: Tue Jan 07, 2014 8:15 am

What Is The Difference Between Whole Life And Term Life Insurance? Which Is Better To Have?

Postby Montgomery » Sun May 14, 2017 6:43 am

Term Life is a low cost insurance policy which pays a high lump sum at time of death. For example $20 a month will buy you around $500,000 of coverage depending on age and health. Whole life is exactly what it says. It stays in force for your whole life, however long that may be and usually has a side fund attached. This is a high premium plan for example $100 a month for a little coverage say $30,000 a month. It also builds what is called cash value. this means every months a certain amount of your $100 is put into a savings account. However, these policies do not really have a good record. I would buy term and invest the rest, you'll get a better rate of return!! I hope this helps you.
Montgomery
 
Posts: 50
Joined: Thu Mar 13, 2014 7:34 am


Return to Seniors Insurance

 


  • Related topics
    Replies
    Views
    Last post