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what is cheaper? Whole-life or term life insurance?

Public Comments

1. term is by far cheaper, but not better it only covers you temporarily thats why its cheap
2. Read what dave ramsey or suze orman (both consumer finance experts with many books and television shows and radio shows dealing with smart consumer finance has to say on the subject. I have enclosed a direct link to the appropriate area on the dave ramsey website for your learning. I have been where you are and an insurance agent calling themselves a financial planner, financial advisor, etc will try to convince you that whole life makes more sense than a lot of other options but this idea is not supported by anyone that is not in the life insurance industry. Meaning anyone whom does not have something to gain and has an education about fincance will tell you term is always to the way to go. You want a term policy for a pretty small amount given your circumstances like a 50,000 policy to cover your burial and maybe leave a little to your family. As your needs change (ie wife kids house etc) you can increase your coverage easily. Then invest as much as you can in your roth IRA as this gives you the greatest tax advantage and makes for a big difference in how much money you get to keep when you start to withdraw. If you still have money left over to invest afterwords you can put it in a mutual fund or Equity indexed fund or otherwise. You will have to be really careful though because with your youth and lack of financial education there are a lot of so called "professionals" who will in hind sight turn out to be professional pick pocketers and all of those types will attempt to put you in whatever strategy makes them the most money. Call an independant financial advisor and ask specifically if they are in any way connected to or paid any commission from an insurance company or life insurance company and if they say they do or if you believe they do, run to another qualified professional. Always make sure that the advice given to you is backed up by and independant source meaning do your own research of their plan after they give it you. Go to the link below and read up and stay sharp cause the world of professional finance is one filled with a lot of sharks.
3. Term life is cheaper. Which is better? Depends on the GOAL of the insurance. If you want it to pay estate taxes, because you KNOW you're going to die, you need whole life. If you want it to put your kids through school, you need TERM life. Sometimes, a combination of the two is most appropriate. First, set the GOAL, then pick the product.
4. cheaper is a pre conceive idea a 20 year old who buys a 400k to 500k 30 year term can buy a term life policy for about 400 dollars a year, depending on what company he picks. when his term is over he lost 12,000 dollars but has a guarantee conversion right to whole life for about 500 dollars a month 6000 dollars a year or he can pick another 30 year term for about 250 dollars a month or 3000 dollars a year an at the end of the 30 years he will have lost 90,000 dollars but still have a guarantee conversion right for about 10,000 plus dollars a year an he can't get more term. or you can get an index universal for 200 an at age 50 or 60 stop paying an continue your policy for life or depending on how well your policy did start receiving money from your policy while still keeping your life insurance in place. talk to an agent an ask about your options don't take my word for it.
5. Lokahi is the best answer. You need to save in a different way. Life insurance is not an investment. Take the cheap term for 30 year level payments and invest somewhere else where the money is really yours.
6. In most cases, term life insurance is much cheaper than whole life insurance. Term life is cheaper because it provides temporary life insurance protection, usually for 1-30 years. If you outlive the term, your coverage expires, unless you have renewable term life insurance. Also, term life insurance builds no cash value, it is pure protection. You can compare term life insurance quotes with whole life insurance quotes and see for yourself. But, if your question is only "what is cheaper?" Then the answer is term life insurance.
7. Term life insurance has lower premiums, but you are comparing apples to oranges. The longer period of time the insurance is guaranteed for typically the higher the premiums. A 30 year term product is more expensive than a 10 year term product. A whole life product will be the most expensive since it covers the longest period of risk.