Term Life or Whole LIfe, which is best? This is the age old question as one begins to determine which type of life insurance is the best for them personally. In simple terms – Term is for a Term or period of time, not necessarily for Life. Many think Term Life is best served when you own it during your working years and/or while the kids are young. With Term Insurance you are paying for the Life Insurance coverage. In the event you die during the 2o or 30 year term span then the death benefit is paid according to the terms of the policy. You get exactly what you pay for – a transfer of risk during those high income earning years.
Whole Life Insurance will last for ones entire life as long as premiums are paid. Whole life has fixed mortality and expense costs and is designed to build cash values. The cash value reserves can be used in a variety of ways. Premiums can be paid from these reserves, you can withdraw or borrow funds for personal needs or you can take a paid up policy at some point in the future. Whole life can be a Guaranteed “forced savings” plan as well as a plan that provides Guaranteed Death Benefits all the way to Age 100 or beyond.
