Difference between Whole life insurance and Term life insurance?

February 8th, 2010 by admin

4 Responses to “Difference between Whole life insurance and Term life insurance?”

1. taylor swift Says:
   February 8th, 2010 at 4:59 am

   Term covers a number of years like 20-30 so is used for things like covering raising children if a parent dies. A parent who is 20-30 isn't likely to be dead in 20-30 years so it is truly insurance against premature death. You can buy a large amount like a million dollars for a cheap price. When the term is done the children are raised and you should have life savings and your spouse is able to work to support themselves.Whole life covers you the rest of your life so will pay off even if it is 80 years later. So it cost much more for the same amount of coverage so most people buy less of it. You might consider a policy of enough to pay for a funeral if you think you will stay poor your whole life. It builds value over time but not much compared to the increased premium.Besides paying for a funeral you might want it for estate planning. If you have a company or farm you want to leave to heirs and estate taxes would make family sell you might want it but your estate attorney will tell you not an insurance agent.

2. taylor lautner Says:
   February 8th, 2010 at 4:59 am

   Term is better because its cheaper and gives you more insurance for your dollar.Whole gives you cash value that not only costs more, but to withdraw it you have to take a loan against it and pay interest on your own money If you want to invest some money do it with something else.Life Insurance is NOT an investment. Since agents make money money of whole life and universal life that is what they want to sell you and not what's best for you.

3. selena gomez Says:
   February 8th, 2010 at 4:59 am

   Which is better for WHAT? The basic difference, is cost, and how long you are insured for. Term costs drastically less, but will usually only cover you for up to 20 years at a time. Whole will usually cover you until you're 95.Set the goal FIRST, then select the best tool for the job.

4. taylor swift Says:
   February 8th, 2010 at 4:59 am

   Go to Yahoo Finance, click on "Personal Finance" and read the section on life insurance.

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