Life insurance - term, not whole life

If you buy life insurance, always get term insurance, not whole life. Insurance is not a savings or investment program. It is a cushion against life's disasters. You get a lot more cushion for your money if you buy term insurance.

What is hole life insurance? Is that where you invest extra money into your insurance plan in addition to your premiums. I never considered life insurance before but I guess it wouldn't hurt. What are the typical rates for a male smoker?

Whole life is sold as a combination insurance plan and savings plan. A cash value builds up until you reach a maximum, but the insurance value is equal to the face value (that maximum) while you are paying in. The money does earn some interest. Most people think that if they die, their beneficiaries will get the cash value (what has been saved and earned) plus the face value on the insurance. However, the beneficiary never gets more than the face value or the accumulated cash value.

You can buy term life insurance, which just pays if you die and is good only for a set number of years (the term), and either get a lot more insurance for your money or pay a lot less for the insurance. If you decide you need $1,000,000 in life insurance, you will be better off if you buy a term policy and invest the premium difference.

If you are young and have no dependents, you may not need life insurance. Those with children probably need a lot more than they have, and the term should last until the last child finishes their education.

The only problem with not getting life insurance when you are young is that if you develop health problems you may not be able to get any at all.

Ok, as someone with experience with insurance, I have to somewhat disagree with your advice. It really depends on the person's needs. If for example your current job requires you to travel frequently, or any other activity where you are worried about your safety, then term insurance might be the better option.

Also, with some 'whole life' insurance plans, you don't even have to pay premiums forever. Once your cash value has accumulated enough you can often cease paying premiums and just ride off of your accumulated cash value. If your insurance agent/broker really has your best interests at heart, he or she would almost definitely make you aware of the various options available. To the best of my knowledge, the agents' commission will not be affected if a client stops paying premiums as long as the said client still has some cash value left. So talk to your agent about what really is best for you.

I think term life insurance works out best for the insurance companies, so many of them might try to push that option at you. Haha, and you know if the insurance company is winning, then someone (you) must be losing, right? ;)

Hi, you will find all about information about insurance.