Can someone help me please? TIA, Pat 1|1|One is plain insurance|fbutte|fyb33@yahoo.com|16:36:31|02/02/2014|
The other is investment of sorts.
I would go for whole life--straight insurance. A lot lot cheaper.
The term life gives you very little insurance for the money. Your agent will most likely push this one. Because he makes a lot more money in it. The return is poor. The agent will tell you you will get some of your money back. You are better off by u\investing the difference in payments in I bonds. I bond is a government backed bond like the EEE. Difference is your interest rate is based on cost of living. Can be purchased at www.usbonds.gov
2|2|You've reversed the terms ~ article inside explains the difference|oakridge32|hammer_1116@yahoo.com|17:32:53|02/02/2014|
http://www.nydailynews.com/new-york/money-pros-life-insurance-term-policy-best-article-1.1565330 3|1|Answer inside|brainyblonde|brainyblonde410@gmail.com|17:50:28|02/02/2014|
Term insurance provides a death benefit at the face amount purchased, if death occurs during the term period. Many term policies today are sold for a specific time period (10, 15, 20, 30 years) and premiums are level for that term. Advantage is that you can purchase more coverage because the premiums are low. Disadvantage is that at the end of the term period, you either have no coverage, less coverage, or a cost prohibitive premium that increases each year.
Whole life coverage has a guaranteed premium, guaranteed death benefit, and guaranteed cash value. Advantage is that you have a living benefit - the ability to borrow from the cash value of the policy at a reasonable interest rate. Disadvantage is that premiums are much higher for whole life than for term insurance. If your purchase coverage from a mutual company, you have the added benefit of non-guaranteed dividends.
When my husband and I purchased insurance many years ago, we bought a combination of both whole life and term insurance. The whole life coverage was to cover final expenses, and the term to provide for loss of income when our kids were younger. I continued my husband's term insurance for a few extra years because I still had kids at home, and I'm glad I did. When he passed away unexpectedly, two years ago, the extra money helped me pay off debt.
Be realistic in budgeting for the premium, and buy what you can afford.