Better? One is not better than the other. It all depends on what you need. Term life insurance will have a cheaper cost per month than a perminant policy will. BUT...it will eventually end or run out, leaving you with no coverage. You will have to buy another term policy, at a higher cost per month because you are now older than before, or simply go without it.
On the flip side, you could purchase a perminant policy that will last until age 120. (Most of us will be gone before then) While you will pay more per month, your are in reality, not. The policy will not increase in price over the years, so the price you pay today will be the price you pay at age 90. This is a major difference in the types of policies.
Which one you need is an important decision. It's best if you set down with a professional and go over these two options in more detail. Which one is better? Whichever fits your life better!
It depends on your unique situation as to whether term life or permanent life insurance is best for you. Everyone has a different and unique situation. There is no one size fits all with life insurance. Term life insurance has it's place to cover a specific debt or create an instant estate in case of an untimely death at an affordable rate. Permanent life insurance plans solve more problems like, lifetime coverage, cash value options to pay for critical illness expenses to retirement income. I recommend sitting down with an experienced independent life insurance broker to help determine your need and the proper product to fill that need.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Term and permanent insurance meet different needs. A permanent policy is designed to pay a death benefit regardless of when it occurs. A term policy provides a death benefit for a predetermined period of time. If you look at a mortality curve you will see that most people die later in life. Since few term policies pay a death benefit you could say that they are usually all cost. Since most whole life policies do pay a death benefit or cash benefit you could say that they are actually less expensive.
That is an excellent question! It is a very commonly asked question, as people often have questions about the two. Term insurance is the better choice if you only want the coverage to last a short time. If you want to insure your life, a permanent policy cannot be outlived, and is the better option. If you want to supplement that amount, then perhaps a term policy/permanent policy mix is the best option. It will depend upon your need, your budget, and your health. If you'd like help, please contact me, okay? Thanks for asking!
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
The question of whether Term is better than Whole life insurance is really a question of opinion. In my opinion, in no case is term better than Whole Life insurance. Is it cheaper - yes. Is it equal when it comes to death benefit - yes - IF it's paid. As one agent said to me, "when you give the check to the beneficiary will they say, "oh this is no good - it came from a term policy"..?" Thing is most often the death benefit is never paid on term policies. That's why they're relatively so cheap. (Of course that depends on how old a person is when the policy is implemented.)
There are so many more benefits with Whole Life that really Term cannot compare. Please see the article at this link: https://www.linkedin.com/pulse/what-characteristics-whole-life-insurance-stan-cox-ii?trk=prof-post
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On the flip side, you could purchase a perminant policy that will last until age 120. (Most of us will be gone before then) While you will pay more per month, your are in reality, not. The policy will not increase in price over the years, so the price you pay today will be the price you pay at age 90. This is a major difference in the types of policies.
Which one you need is an important decision. It's best if you set down with a professional and go over these two options in more detail. Which one is better? Whichever fits your life better!
There are so many more benefits with Whole Life that really Term cannot compare. Please see the article at this link: https://www.linkedin.com/pulse/what-characteristics-whole-life-insurance-stan-cox-ii?trk=prof-post