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debedwards
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Life Insurance  Reply with quote  

Is it more practical to get term life insurance than universal life insurance? I can't have kids by the way but I'm married.

elder care specialist | long term care insurance costs | life line screenings
Post Fri Oct 28, 2011 8:50 am
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coaster
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If your purpose is to buy life insurance, then absolutely, just buy term insurance.

~Tim~
Post Sat Oct 29, 2011 7:08 am
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littleroc02us
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I just signed up for 500k of term life 20 year and it is very cheap. The reason I wouldn't even consider Universal cash value is because I can do much better with my investments without all of the fees and who needs life insurance forever. I plan to be wealthy in my retirement and have all of my debt and house paid off by the end of 20 years.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Nov 09, 2011 4:59 pm
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robmejia
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"A term policy is life coverage only. On the death of the insured it pays the face amount of the policy to the named beneficiary. You can buy term for periods of one year to 30 years. Whole life insurance, on the other hand, combines a term policy with an investment component."

So if you want an investment component on your insurance plan, why not go with the whole life insurance/universal life insurance.
Post Thu Nov 10, 2011 12:58 pm
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oldguy
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quote:
So if you want an investment component on your insurance plan, why not go with the whole life insurance/universal life insurance.


Because life insurance investment compnents are among the worst, they have very low returns.

A good rule is to never mix your insurance needs with your investment needs, you'll get the worst of both.

Buy straight term insurance to cover your insurance needs. And invest that difference between a whole life premium and a term premium elsewhere - your 'elsewhere' account could easily become your biggest asset.
Post Thu Nov 10, 2011 1:43 pm
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littleroc02us
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quote:
Originally posted by robmejia
"A term policy is life coverage only. .


Exactly and I plan to keep it that way!

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu Nov 10, 2011 2:06 pm
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debedwards
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I appreciate all your suggestions. Thanks! I'll apply for term life insurance. It has always been my first choice and I just want to know if I'm making the right decision. Thanks again!

elder care specialist | long term care insurance costs | life line screenings
Post Sat Nov 12, 2011 3:56 am
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onemax
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hi  Reply with quote  

i don't like to have insurance because life not secure. what can i do with money if died? perhaps that might help to your children.
Post Sat Nov 12, 2011 7:31 am
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soybean
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Re: hi  Reply with quote  

quote:
Originally posted by onemax
..,. what can i do with money if died?
That's an absurd comment. Why do you think people generally buy life insurance? They buy it to for the benefit of persons designated as beneficiaries. This could be a spouse, children, or anyone for whom some protection is desired. Continued financial support of persons (typically children and/or spouse, and perhaps parents or siblings) who would be financially distressed by the loss of financial support in the event of your death is usually the motive for having life insurance.
Post Sat Nov 12, 2011 4:00 pm
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EwaMajowska
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I was searching this for a couple of weeks because I am interested in my little ones insurance and don't want it to confirm with the insurance person...
Thank you for sharing this ....
Post Mon Nov 14, 2011 7:26 pm
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ninasen
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Re: hi  Reply with quote  

quote:
Originally posted by onemax
i don't like to have insurance because life not secure. what can i do with money if died? perhaps that might help to your children.



Maybe partially, you are right.
Post Wed Nov 16, 2011 9:19 am
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runawaykinms
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quote:
Originally posted by littleroc02us
I just signed up for 500k of term life 20 year and it is very cheap. The reason I wouldn't even consider Universal cash value is because I can do much better with my investments without all of the fees and who needs life insurance forever. I plan to be wealthy in my retirement and have all of my debt and house paid off by the end of 20 years.


From someone who sells life insurance, I agree with the quote above. Term life insurance is great for protecting you and your family until you become more financially secure. Then you probably won't need it.

As for universal life insurance, I agree with littleroc on the cash value aspect of this. Your investments could probably do better in a different fund than in a life insurance fund.

However, there are some term insurance policies that do not have a cash value, but allow you to extend the term for a higher premium. Why is that a good thing? Lets say you have a 20 year term policy and get cancer in year 19 and doctors say you will live 2 more years. If it is just a traditional term policy you would not get anything if you died after the 20 years. However, if you knew this coming and were willing to pay higher premiums for the last couple of years, you would be able to make higher premium payments to keep the policy active. This feature is included in most policies today, but you will want to make sure. Keep in mind, you will pay for this feature if you decide to use it. Example, if you pay $30 a month for 30 years, the price could then jump to $200 a month to continue that coverage. Not worth it unless you see death in the near future and would otherwise be uninsurable.

Let the insurance companies focus on the life insurance and the investment groups focus on accumulating your wealth or savings.
Post Fri Dec 23, 2011 8:13 pm
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