Life Insurance Question

[TulipsAndSunscreen]

I'm so confused now. I thought term was cheaper but isn't worth as much later on or something? So my understanding is that if you're older/have a pre-existing condition you might not be able to get whole life insurance...i.e. you should get it while you're young.

Clearly I need to do more research....

Term IS cheaper & carries no cash value until you're dead. That's why it's no big deal that you get a new policy every time you change jobs. Most people your age go for term. Think of whole as more of an investment. Would you start a new IRA before heading to Africa for a year? It's not that one will pay out differently if something happens to one of you, it's that term isn't going to be building a cash value.

[poky]

Term is *just* life insurance, and it has an expiration date. Whole is insurance that lasts until you die (and pays out no matter what...unless it does expire when you turn 100, which I gather some do, and you live longer than that), and as such is an investment, but it's one with a poor return unless you die relatively young. In theory, most people don't need life insurance forever. As you get older, your financial obligations decrease and your savings goes up, so the need for life insurance goes down. It's *generally* better to buy term insurance for the life insurance, to help survivors make it through the early loss of a wage-earning (or caregiving) loved one financially, and invest the rest of what you would have spent on whole life in an actual real investment that will have a better return that whole life would.

[migirl]

And - according to our financial planner - a whole life policy isn't really a very good investment vehicle anyway, if that's how you're looking at it.

I'd agree with getting a term policy.

[madeintaiwan]

I'm so confused now. I thought term was cheaper but isn't worth as much later on or something? So my understanding is that if you're older/have a pre-existing condition you might not be able to get whole life insurance...i.e. you should get it while you're young.

Clearly I need to do more research....

TERM is cheaper and IS what you should be purchasing. Our 20 year term policies for 500k are $300 and $460 a year. Much less than the 1100k a year for 100k of coverage you spoke about earlier. Forget about the WHOLE life insurance. You can pretty much plan on needing a physical and blood work for any life insurance. Premiums go up with age and health conditions.

[Vishenka69]

And - according to our financial planner - a whole life policy isn't really a very good investment vehicle anyway, if that's how you're looking at it.

I'd agree with getting a term policy.

That's exactly the advice we were given as well. DH's term premium on $1M policy is $990. You definitely don't need whole right now.

[fluffhead]

We just applied, after procrastinating for 10 years. Went through an agent, because I have some family history that works against me, and I wanted to find a company which would still give me good rates. The nurse came on sunday to take our bodily fluids, and hopefully we'll hear something soon.
Decided on 20-yr term for each of us.

[Michele]

We just have term life on Russ. He'd be fine financially if i died....the grandparents and aunts would easily step in to assist with childcare. We went with an amount that I would feel comfortable living on for 5 years....including childcare, house/debts, etc and not need to work or ask for help. He's worth more dead than disabled right now....once he can apply for specialty coverage that will change.