Do I buy Term Insurance or Permanent insurance (Whole Life/Universal Life)??
If I had a nickel for every time I was asked what was better, term or permanent, I'd be retired by now. There's no right or wrong answer to that question. If you can tell me NOW the exact date you're going to die, then I can give you a definitive answer, otherwise, the correct answer is a mixture of both. Regardless, life insurance should play a major role in your financial planning.
Term insurance provides a variety of options and allows for the greatest amount of coverage for the lowest cost. However, it is limited in that you only have coverage for a specified length of time and then (with some slight exceptions) you're done. It also has no cash value. Keep in mind that you can get a Return of Premium rider added to your policy at a very low cost and this will refund all your premiums if you are lucky enough to outlive your term policy (and over 90% of us do).
Whole Life and Universal Life provide coverage for an entire lifetime. As long as you continue to pay your premiums, the death benefit will be paid at some point, guaranteed. The differences between the two involve a much longer conversation, but it's important to know that each one features cash values and they can sometimes pay for themselves after a certain number of years.
Also, keep in mind that life insurance death benefits paid to your beneficiaries are tax-free.
Call or email us and we'll be happy to explain these concepts further and put a dollar cost to the solutions you seek.
