When you are putting together your financial planning portfolio, one of the most boring aspects of it is life insurance. You've been told a hundred times that you should have life insurance, but what kind of life insurance should you buy?
If you discuss this issue with the majority of insurance agents, they will probably tell you to get the whole life insurance-you know, the one that costs more monthly but builds up cash value over several years as you keep putting money into it.
However, if you talk to most other financial experts, they will advise term life insurance-the kind with the low monthly premium that only pays a benefit upon the death of the policy holder.
I am in the camp of those recommending term life insurance, and here are 3 reasons why:
1. Term insurance does what life insurance is meant to do
The main reason you want to buy life insurance is to see to it that your family is covered in case something happens to you, so there is no reason to turn it into anything more than that. When you buy term life insurance, you insure your family during the time period they need to be covered-this is the purpose of getting life insurance to begin with.
2. Term life insurance is far cheaper than whole life insurance
Not only will term insurance do exactly what a life insurance policy should, it is also a lot less expensive than whole life insurance. In many cases, you can save hundreds per month for the same dollar amount of protection with a term policy.
3. Term life insurance allows you to have greater control with the rest of your financial portfolio
Instead of putting hundreds of dollars every month into a whole life policy where you will have very little idea what the return on investment is, take the money you save every month and invest it in IRAs or some other investment that will give you more freedom and flexibility with your money.
For the majority of people, the best move is to "buy term and invest the rest." Compare prices today and see what kind of life insurance policy is best for your family.
Get a low cost life insurance quote from a reliable provider in your area and secure your family's financial future today at www.lifeinsurancequotetoday
Orignal From: 3 Reasons to Consider Buying Term Life Insurance
No comments:
Post a Comment