Reader’s Question:
I know I need life insurance but I’m on the verge of deciding on whether I’ll get whole life insurance or term life insurance. Whole life seems attractive and term is cheap? Can give me some facts about the two that would affect my decision? I am buying life insurance in Fort Wayne, Indiana.
Renzo
Fort Wayne, IN
Hello Renzo
Sure. I can give you feedback on what is with whole life insurance and term life insurance and see if it suits you.
Whole life insurance is obviously a permanent life insurance. You are stuck at paying premiums so the policy will be enforced. The positive side to this is you are not just saving for the benefit of the dependents that will be left behind when you die. You will also benefit since this is investment at the same time. In due time and when the cash value has accumulated substantially, you can borrow the funds and still enforce the life insurance. The drawback is that such life insurance is expensive but if you can afford, why not? After all, it’s your investment and you’re building cash for your life. If your money has nowhere to go, then this could be beneficial as this is stable investment.
Term life insurance on the other hand, is specified on period. This is purely life insurance coverage. When you die, that’s the time that your dependents will benefit from the life insurance. You cannot withdraw; you just have to pay to enforce the life insurance. If the period ends and you decline from renewing, you will gain nothing. Nevertheless, it’s cheaper. Plus, you may need such life insurance only when your dependents are literally depending on you. When they grow old or when they can live on their own, you can stop the renewal. In essence, you would just need the life insurance in certain time and you won’t get stuck paying for it for a lifetime.
In conclusion, you need to consider some key points: Are you capable of paying for a lifetime? Do you really need life insurance even if your children will live you soon? Do you really need investment to go with your insurance? Can you afford the whole life insurance? If the answer is no, then perhaps, term life insurance is best for you in Fort Wayne, Indiana.
Tags: life insurance, term life insurance, whole life insurance