People may think Cheap Life Insurance is Term Life Insurance and that the more expensive Life Insurance is Whole Life Insurance is better .
The better instant life insurance is actually term life insurance.
If you are looking for cheap life insurance then look no further . Term Life insurance is the only way to go . Although it is considered the “cheap life insurance” you need to understand that like auto insurance it is pure insurance . There is no investment portion when buying an auto insurance policy. There is no bundling of an investment and auto insurance together . Nothing complicated about it. Pure life insurance = Cheap life insurance = Term Life insurance .
Term Life Insurance gives families the greatest amount of life coverage at the cheapest price
Although labeled the cheap life insurance it provides families the most value for each dollar spent. Life insurance is really only needed when you have children depending on you for your income which is normally less than 30 years .
There are those who will state that term coverage is only available for less than 30 years
Why do you need life insurance longer than that? If you no longer need life insurance coverage why continue to pay the monthly premiums?
With the higher chance of death as people age would you think life insurance rates become cheaper or more expensive?
More costly. The older the person is the higher risk the person may be at correct? With whole life insurance, higher risk = higher monthly premiums .
Some insurance agents that sell whole life policies will tell you that the monthly premiums will stay the same forever
Initially the instant life insurance premium will stay the same on a whole life insurance policy but remember, higher the age the higher the risk = the higher the cost to insure you .
But I have “Cash Value” with my insurance policy . Some may think that cash value is important to have but they don’t understand what cash value means.
The cash value or the investment portion that you are being pushed to purchase whole life insurance with is never actually yours . The cash value can only be borrowed. The family receives NONE of the cash value built up and only receives the death benefit if the policy is executed . The cash value goes to the insurance company .
On a whole life insurance policy with the first year of premium payments you get NO CASH VALUE .
What happens is that you continue to pay the same premium each month but as you get older the insurance company will start to deduct from your beloved “cash value” investment because the cost of insuring you goes up . If you hold a whole life insurance policy and you hit the age of 55-60 keep a close eye on your cash value. It will start to deplete due to higher costs to insure you.
Whole life insurance policy owners, check your policy each year . The higher cost of insuring you will start to drain your cash value on a whole life policy .
You will be asking yourself what happened when your “cash value” is depleted and your monthly whole life insurance premiums skyrocket .
You will be left with no cash value and no life insurance policy at that point in time.
If you want to be insured at over ages 65 you will have to pay a huge premium. Whole Life Insurance companies don’t care if you can no longer afford to pay the premiums. If you are at a higher risk they would rather have you cancel your policy to avoid paying the death benefit.
Check the cost of insurance table for ages 65 and above. Ask your agent . The cost of insurance skyrockets after a certain age .
Instead of purchasing a whole life policy stick to term life insurance . Determine how much coverage you and your family really need for how long a period of time and then compare several cheap life insurance quotes and purchase your term life insurance policy .
Don’t think about attaining the most amount of life insurance you can. Think about the “Why” behind buying life insurance
Buying life insurance is NOT to make your family rich. It is to protect the income that provides for the dependents / children in the family.
What will happen to the children/spouse (the dependents) if the breadwinner or income provider dies?
The income no longer comes in each month to provide for the family! It’s a serious financial loss and puts the rest of the family in financial hardship . The family’s standard of living may drop without that income source .
What monthly amount is needed each month to cover monthly family needs?
Even though term life insurance is termed low cost life insurance it is worth every penny
With whole life insurance being the more costly life coverage it is certainly not the best deal.
If your purpose to buy life insurance is to protect your spouse and kids from financial hardship in case of your loss then term insurance is the only way to go .
In less than 30 years your dependents / children will finish school and start working to create their own income to support themselves. You will no longer need life insurance to protect your children .
At that time why would you need life insurance any longer?
Using life insurance to protect your parents who may become dependent on your income is acceptable but preventable.
There is an additional strategy that we wholeheartedly recommend and implore you to take . That is to become self insured through the savings of purchasing the “cheap life insurance” or Term life insurance .
As an instant life insurance comparison site in finding cheap life insurance, determine the amount of life insurance coverage you need, compare the life insurance quotes that you receive and decide on a policy .
BaseQuotes.com provides a life insurance rate / life insurance quote from several insurance companies in your area . Take the time to compare life insurance quotes and choose the policy that suits your family best .