All Life Insurance Tips

Insurance, Investment?

PLEASE TELL ME THE ANSWER FOR THE BLANK. Whole life is comprised of Term Life Insurance plus an Investment component. It is much cheaper to buy _______ Insurance separately and invest in a low-cost Index fund, like Vanguard.

Public Comments

1. Term. And I disagree - whole life is SOLD as having an investment component, but it's a pretty rotten return - like a NEGATIVE return.
2. The blank should be "term life". (The real answer is: it's far better to be self-insured.)
3. There is no answer to the question. This would never be asked on a test as it is non-factual. People do not purchase whole life insurance as an investment. They purchase whole life to provide Permanent Life Insurance coverage for LIFE.