February 14, 2008
Q: What is better Term Life, Whole Life insurance, Universal Life? Which should I get?
A: I’m a big fan of term insurance; big death benefits and small premiums. Since 30% of the US population does not have any life insurance and 1 out of 3 Americans with insurance only have coverage from group life policies, I’d go out on a limb and suggest some term coverage is better than nothing.
That said if you have legitimate needs for life insurance for the rest of your life (and money is not an issue) get whole life. If you’re a walking financial disaster area and whole life is the only way you can force yourself to save money, get the policy. Otherwise, get a cheap term policy that lasts until your kids are grown up (and out) and invest the rest.
If you’re truly interested, consult with an experienced agent with access to several life insurance companies. Someone with a CLU, LUTCF or ChFC certification has undergone coursework in life insurance studies and can walk you through the process.
For a insurance needs calculator.
For an idea on how much to get.
For Stephan Evanko’s take on life insurance: http://ohio-insurance-forum.blogspot.com/2007/07/10-mistakes-people-make-with-their-life.html
Listen to someone who disagrees with my take on whole life: http://www.life-line.org/pdf/WholeStoryofWholeLife.pdf
Someone who agrees with me: http://www.thesimpledollar.com/2007/06/07/interesting-insights-into-life-insurance-from-an-actuary-how-he-would-buy-life-insurance/
