Term or Whole Life Insurance- Picking What's Best for You
"Should I get term or whole life insurance?"
This is probably one of the most common questions out there, and hopefully this article will help answer your question.
The best way to help you determine whether you should get term or whole life insurance is to look at the benefits of each:
Whole life insurance:
Benefits:
1) Fixed rate forever!
2) Can be less expensive in the long run
3) No worrying about your policy terms and conditions changing
Drawbacks:
1) Less flexibility
2) More expensive (relatively) in the early years when income is lower.
Term life insurance:
1) Fixed rate for the term period
2) Very flexible
3) Easily set up to last just the right amount of time (mortgage is paid off, kids graduate, etc.)
Drawbacks:
1) Can be more expensive in the long term as premiums increase with renewals
2) Premium increases can be dramatic after a long term
Other questions you should ask yourself are
1) Do I plan on having life insurance forever?
2) Can I afford the higher premiums of whole life insurance right now?
3) Do I want to be able to easily switch my policy every few years with term? Or build a relationship with a whole life insurance provider?
Once you've answered these questions and looked at the benefits of each, you can more easily decide whether you want term or whole life insurance.
Basically term life insurance is better in the short run (meaning 30 years or less) to help you protect your loved ones in case your income stream disappeared.
Whole life insurance is better for the long haul if you plan on having life insurance for a long time and can afford the higher premiums right now.
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Article Source: ArticlesBase.com
