All Life Insurance Tips

What good is term life insurance?

I fully intend to live longer than most term life insurance policies cover! Whole life is more practical, to my way of thinking.

Public Comments

1. You "intend" to live longer? Intentions don't always work out. Term life provides the most protection for the least premium for most people. You need life insurance when you have others (young children, mainly) who depends on you financially. You don't need it in your senior years. Whole life is marketed as an "investment" by the insurance companies, but its a lousy investment for the policyholder.
2. Depends on what the goal is. are you ever planning on retiring? Life insurance is intended to replace lost earned income. If you aren't earning income, you haven't lost anything, when you die. Whole life is MUCH more expensive than term. Me, I have term, and will be "self insured" when my 20 year term policy runs out. That means, I will have saved enough money on the insurance and everything else, that I don't NEED life insurance to pay it. Set the goal first. What's the GOAL of the insurance? Then, run the numbers. What's the future value of the compounded interest of the money you're paying the insurance company? Then, select the cheapest tool that achieves the GOAL.
3. 1. Term insurance allows people to purchase essential life insurance who otherwise could not afford whole life. 2. Not everyone wants an investment element as part of their life insurance plan.
4. Then consider a universal life with a premium guarantee to age....70, 80, 90 or 100. Cheaper than whole life and accomplishes the goal of keeping life insurance past 30 years. There's also 40 year term too though....
5. Your intention to live longer is good. If you think, you are likely to survive the policy period, then term insurance is a waste of money. Ofcourse, term insurance is a bargain. Try to understand that compared to whole life insurance policies, term insurance is very cheap. For a term insurance of Rs 25 Lakhs, a 30 year old has to pay only Rs 3.4 Lacs over a period 35 years. Alternatively, if he goes for a single premium, he has to pay only Rs 1.4 Lacs. Is it not cheap? Nothing comes free these days.