All Life Insurance Tips

Term Life vs. Whole Life?

I think I understand it, but can someone please explain the differences between the two? Is the difference in the "cost" worth it? Is it really advisable to get whole life insurance (because of the "build up in value") or would it be better to just channel the money that you would be saving (by getting term life) into some other type of investment?

Public Comments

1. If the GOAL is investing or savings, insurance is NOT the proper product. Me, personally, I ONLY have term, and invest the difference. I DO see a time in the future, when I will NO longer have any life insurance in place. If you've got enough money in the bank, you don't NEED life insurance. For most people. There are exceptions - when estates get large enough, if you don't plan properly, there are heavy taxes due the government. So whole life can be used to pay those taxes so you don't have to literally sell the family farm when dad dies. Best thing to do, is sit down with a flat fee estate planner, someone who is NOT going to sell you insurance (so they are unbiased!), and discuss the situation with them.
2. Go to Yahoo Finance, click on "Personal Finance" and read the section on life insurance. It explains the major policy types.
3. I have been told to only get term insurance, and to invest the money you save in other ways. I have also been told, in classes in collage, that life insurance is only needed when you have a family that would need the money when you die. If you have no dependants than you can save for a funeral another way, especially if you are young.