Even Though Term Insurance Is Cheaper Is It Good?
People may think Cheap Life Insurance is Term Life Insurance and that the more expensive Life Insurance is Whole Life Insurance is better .
The truth is that when looking at instant life insurance: whole life insurance vs term it is term life insurance that is the better coverage for everyone .
If you are looking for cheap life insurance then look no further . The best type of coverage is term life insurance . Even though it is considered the “cheap life insurance” it is important to keep in mind that term life insurance is just like auto insurance: pure insurance. Just like buying car insurance there is no investing portion to it . There is no bundling of an investment and auto insurance together . It is plain and simple . Pure life insurance = Cheap life insurance = Term Life insurance .
REMEMBER: Term Insurance offers the MOST life insurance coverage at the MOST afforable price
With Term Life insurance / The “Cheap Life Insurance” you can have the greatest amount of coverage ONLY for the time that you need it . Life insurance is really only needed when you have children depending on you for your income which is normally less than 30 years .
People will say “But it is only available for less than 30 years!”
Do you need life insurance forever? Do you want to continue paying high life insurance premiums for the rest of your life?
As you get older does life insurance become more expensive or cheaper?
More costly. You understand that the older you are the higher the risk you will be right? The higher the risk the higher your insurance premiums will be if you have a Whole life insurance policy .
Some insurance agents that sell whole life policies will tell you that the monthly premiums will stay the same forever
In the beginning, the instant life insurance premiums you pay on your life insurance will remain constant but will increase dramatically as your risk increases with age .
But I have “Cash Value” with my insurance policy . Some may think that cash value is important to have but they don’t understand what cash value means.
The amount of cash value you have in your whole life insurance policy is never yours. The cash value can only be borrowed. If you die then the family receives the death benefit and NONE of the cash value . The insurer gets to keep your cash value.
Also, in your first year of paying monthly whole life insurance premiums you receive NO CASH VALUE .
As you the policy holder’s age increases (higher risk = higher cost) the cash value will be used to cover the difference in your higher monthly premiums. You will start to see your whole life insurance costs jump once your cash value is depleted. If you hold a whole life insurance policy and you hit the age of 55-60 keep a close eye on your cash value. It will start to deplete due to higher costs to insure you.
Make sure you check your policy several times a year if you own a whole life policy . You will start to see decreasing amounts in your cash value as you get older because it is being drained by the higher cost of insuring you .
A lot of people are shocked when their “cash value” is gone and their monthly premiums go up dramatically.
By that time the life insurance agent who sold you that whole life insurance policy will be long gone and your life insurance company will care less if you cannot afford the new high monthly premium payments that will continue to go up each month .
They would rather not insure you anymore because the risk is too high at ages over 65 . It is in their best interest to charge your more OR just have you cancel the whole life insurance policy so they would not have to worry about the death benefit .
Check the cost of insurance table for ages 65 and above. Ask your agent . The cost of insurance skyrockets after a certain age .
Instead of purchasing a whole life policy stick to term life insurance . Calculate the total amount of coverage your family really needs for a specific period time and retrieve term life insurance quotes .
In general when people purchase a policy they only think about how much death benefit to purchase . They do not ask “Why do I need Life Insurance and do I need it now?”.
Purpose of life insurance is NOT for your family to get a large sum of money if something happens to you or the bread winner of the family .
If the income provider passes on what will happen to the children?
The income no longer comes in each month to provide for the family! It’s a serious financial loss and puts the rest of the family in financial hardship . The family’s standard of living may drop without that income source .
What monthly amount is needed each month to cover monthly family needs?
Even though term life insurance is termed low cost life insurance it is worth every penny
Whole life insurance, the more expensive life insurance may not be the best deal after all .
There is only one way to go if you plan to purchase life insurance to protect your family and that is term life insurance coverage.
In less than 30 years your dependents / children will finish school and start working to create their own income to support themselves. After they become financially independent then you will no longer need life insurance to protect your children .
When you no longer need life insurance you can use that amount and start saving.
If it is to protect your spouse or your own parents (if you are supporting them) from your loss then that is acceptable but preventable .
It is our belief that people take an additional step. That is to become self insured through the savings of purchasing the “cheap life insurance” or Term life insurance .
As an instant life insurance comparison site in finding cheap life insurance, determine the amount of life insurance coverage you need, compare the life insurance quotes that you receive and decide on a policy .
BaseQuotes.com provides a life insurance rate / life insurance quote from several insurance companies in your area . Compare the life policies and decide on which life quote will suit your family best .
