2019 Whole Life Insurance vs Term (Suze Orman)
- Term Life is renting insurance for a specific number of years.
- A term life insurance policy provides a death benefit when the insured dies.
- It is “term” because policies come in different time terms: annual renewable term, 20 year decreasing term, 30 year level term, etc.
- If the insured outlives the term of the policy, there are no benefits when the contract ends.
- Some companies issue term to age 65 or 70.
- Most companies will not issue term life policies beyond those ages: too much risk and premiums that people would shun.
- Term life premiums are affordable for most people.
- They are lower than premiums for whole life insurance.
- A whole life insurance policy is designed to stay enforce to age 100 or higher.
- Premiums are calculated based on age, gender and risk factors, the same as term, except whole life takes into consideration the insured living to age 100 and loads the premium for that risk.
- Whole life premiums are higher than term life premiums for same age, gender and risk.
- Your premium rates from life insurance, whether term or whole, will remain at the same amount throughout the length of your policy.
Which is better: term or whole life insurance?
Whether or not term or whole life insurance is better for you depends on what kind of protection you’re looking for and for how long.
Term life insurance would be better if:
- You only need life insurance to cover your family while you’re financially vulnerable, like if you have young children or you’re paying off a mortgage.
- You might want permanent life insurance, but can’t currently afford it. Most term life policies can be converted into whole life as long as it meets a deadline set by your policy
Whole life insurance would be better if:
- You need coverage for the rest of your life
- You want to provide money for your heirs to pay estate taxes
- You have a lifelong dependent, such a child with special needs, who will require continued care after you’re gone
- You want to spend your retirement savings, but still be able to pay for your own funeral
- You wish to equalize inheritance among your children or others
Mintco Financial Life Insurance Quotes Online
There are benefits to both types of insurance. It will be up to you decide what works best for you.
At the end of the day, life insurance packages should be tailored to the wants, needs, and goals of the client, and can be if you’re sitting down with the right adviser for you.
No two people or plans are identical so getting someone who’s well versed in the arena will work wonders for you!
Call 813-964-7100 or 716-565-1300