Re: What Type of Life Insurance?
with term life, you pay small premiums, but may never collect any payout? With whole life, you pay larger premiums, but are guaranteed a payout? Isn't that like renting a house versus buying one?
the logic is basically this : buy term for way less $, invest the difference
that way, you buy insurance for what it is (if you need it)
then, you invest that saved money in what you want - there a million ways to invest. Most don't like to be pigeon-holed into what their insurance company invests in on their behalf.
Most people like control of their investments. Some don't.
Term is usually way cheaper, but not necessarily in all cases. I have no dependents, but the group term life at my work is so cheap, I bought a million coverage and named my 4 neices and nephews...that way if I kick it, they'll get a nice surprise... it's cheaper than buying a few quick pick lotto tix each week.
The big scams are things like mortgage insurance. Where, you pay the mortgage down, yet the premiums do not decrease.
And the policy isn't underwritten until someone goes to claim it - which is too scary for me. no thanks to life insurance sold by a bank teller with no license to sell insurance. .
Got a $100,000 mortgage - go buy a term policy for $100K... you'll find the premiums are less, you have an actual policy in hand, and the widow can use the money for anything - doesn't have to put toward mortgage.
Most folks I know have way too much life insurance, and way too LITTLE disability coverage.
