Should I Buy Whole Life Insurance or Term?

Compare Whole Life Insurance

and Term Life Insurance

 

If you’re considering the purchase of a life insurance policy you may be wondering what type of insurance is right for you.

There are two basic types of life insurance plans available: Term and Whole Life.

Determining which type of insurance is right for you will depend on your own personal insurance needs and your situation.

When choosing the right type of life insurance to meet your own needs you’ll want to consider one important question:

 

How long do you need life insurance?

The answer to this question will get to the heart of the matter – Which life insurance is right for you?

If you need life insurance to last for a period of 30 years or less, then term life insurance gives you the coverage you need at the lowest price.

If you need protection for a period lasting longer than 30 years, then a whole life insurance policy will help you accomplish your goal.

 

Top Pick – JRC Insurance Group

JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote

 

Term Life versus Whole Life –

Benefits and Drawbacks

 

Benefits of Term Life Insurance

  • Pricing – Low cost coverage.
  • Flexibility – Choose coverage for a duration of 10, 15, 20 or 30 years to meet your needs.
  • Easy-to-Understand – Your coverage lasts for the duration of your term.
  • Pure Protection – Life insurance, not an investment.
  • Guaranteed Premiums – Level premiums for the entire duration of your coverage.

 

Drawbacks of Term Life Insurance

  • Duration – You may outlive the length of time you have coverage and find you still need life insurance protection beyond the duration of your policy term.
  • Uninsurable – You may need life insurance after your policy term ends and if you have developed health problems you may find you are uninsurable – unable to get another life insurance policy.

 

Benefits of Whole Life Insurance

  • Lifetime Protection – Your life insurance last for your entire lifetime as long as you pay your premiums.
  • Cash Value – Your policy may build some cash value over time from which you may take a loan.

 

Drawbacks of Whole Life Insurance

  • Cost – Whole life costs up to 2-3 times more for the same amount of term life insurance.
  • Inflexible – You pay more upfront because you do not select the duration of coverage to meet your specific life insurance needs.

 

Who Needs Term Life Insurance?

Term life is a very popular type of life insurance because it is flexible and affordable for almost any budget. 

So, anyone on a budget may choose term insurance.

In addition, many people with a family select a term life policy because they have temporary needs until their kids are grown of the mortgage loan is paid off.

 

Common Reasons to Buy Term Life Insurance

  • Married – You recently got engaged or married.
  • Bought Home – You purchase a new condominium or house.
  • Job Promotion – You got a promotion at work.
  • Mortgage – Pay off the mortgage loan.
  • College Education – Provide for child’s college education.
  • Financial Security – Maintain family’s lifestyle.
  • Pay Off Debts – Pay off debt including car loans, student loans and credit cards.
  • Living Expenses – Provide for family’s living expenses.
  • Retirement – Fund spouse’s retirement.
  • Final Expenses – Pay for your burial and funeral costs.
  • Business – To protect your business for your survivors.

 

Who Needs Whole Life Insurance?

Some people choose to purchase whole life coverage because they want insurance to last their entire lives so there is money to pay for their final expenses. 

However, if you save a little each money you may have the money built up in your savings to cover the cost of your final expenses in the future.

 

Common Reasons to Buy Whole Life Insurance

  • Level Premiums – Your premiums stay the same for the entire life of your policy.
  • Irrevocable Death Benefit – The policy cannot be canceled as long as the premiums are paid.
  • Pay for Final Expenses – Proceeds from policy may be sued to cover cost of your funeral.
  • Cash Value Growth – Build up some savings.
  • Loans – Take a loan from the cash value available from your policy.
  • Estate Taxes – Provide funds to pay for estate taxes.
  • Participating Dividends – Mutual life insurance carriers pay a portion of their profits back to policyholders in the form of dividends.

 

In addition, you’ll want to answer the following questions to help you get the coverage that meets your specific needs and fits your budget.

  • How much life insurance do you need?
  • How much can you afford to pay for your life insurance?

 

Term Life Insurance Quotes


Top Pick – JRC Insurance Group

JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote


Whole Life Insurance Quotes

 

Top Pick – United of Omaha

United of Omaha offers guaranteed acceptance whole life insurance for people ages 45 to 85. Choose $3,000 up to $25,000 of coverage. Rates start as low as $8.80 per month. There’s no medical exam and no health questions. You cannot be turned down. You can get a quote and apply online now. START HERE to get a FREE Quote

 

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