Should I Buy Term or Whole Life?

Our answer is simply YES! If you need life insurance, don't let this decision stop you. Get the amount you need for the budget you can afford. Get it now! Heck, most term life insurance can be converted or upgraded to whole life during a certain period.

Term life insurance, as it implies, covers a specific term of time. This could be a 10-year term policy, 15-year term and so on. This is great if you have obligations that are at risk for a specific period of time and for a specific purpose. I’ll give an example here:

You have two children ages two and four. Based on today’s situation, you need the majority of your coverage till about the time the kids are in college. So let’s call that 20 years. Sure you might still have obligations (student loans, unfunded retirement for you and your spouse, other debts and so on), but your main concern, providing for your children in their most vulnerable years has been addressed.

Other areas where term life insurance is effective are loans such as mortgages and personally guaranteed loans.

Whole life insurance, as it implies, covers your entire life. Whereas term life insurance only provides temporary coverage for a specific time period, whole life insurance offers protection throughout your lifetime. Whole life insurance gives you guaranteed premiums, cash value growth and potential for your face amount to grow through dividends.

Whole life insurance provides coverage for loans as term life insurance and when your children are minors, but whole life insurance is the best choice for so many other areas such as:

When you buy term life insurance, you’re paying for the cost of insurance and administration fees. When you own a whole life insurance policy, you’re paying more for the costs of insurance and administration, however the extra money accumulates in the cash value of the whole life insurance policy. It’s like a forced savings account with some major advantages over your actual savings account. The benefit of whole life insurance and the reasons many love it over their savings account cash value tax treatment and flexibility. Plus who doesn’t love guaranteed cash value growth.

Please schedule a time with us to learn more or use this tool to get a life insurance quote.