Wednesday, November 14, 2012

Life comes at you fast.

I decided to research Whole Life insurance and Term insurance to see what the difference is and which is better.  Here's what I found...

Of course Whole Life insurance is better.  It builds cash value, and you can borrow against it.  It's long term, and your premium never increases.  It's considered an investment.  The only problem:  price.  Whole life is much more expensive....figures.

Term life insurance doesn't look as good, but it still gets the job done for a much lower price..  The policy only lasts for a particular amount of time or "term."  You can choose--5, 10, 15, 20, or 30+ years depending on where you purchase it.  Obviously, the longer the term, the higher the price will be.  A lot of times term insurance is quicker and easier to purchase.  Many people buy a term life insurance policy to hold them over until they can afford a whole life policy.

The biggest problem with term insurance is that your policy could expire while you are still alive, leaving you without life insurance.  This means that you'll either have to get a new policy (which will be much more expensive when you are 10, 20, or 30 years older) or do without.

My husband says the biggest life insurance problem he sees is that many people rely on the life insurance their employers provide.  The problem with this is that most of the time, the coverage ends when the employment ends--if you quit your job or are laid off, you lose your insurance, and that's bad news in this economy.  If you need more info, or if what I wrote makes no sense to you, feel free to give him a call @ 252-752-8821.

My dad bought a Whole Life policy for me when I was a little girl.  He paid into the policy until I got married and then allowed the cash value the policy had built up to pay the premium for the duration of the policy.  This decreases the amount of money the policy will pay out if I die, but I think my husband said there will be enough to pay for a decent funeral.

I'm thinking I'd just rather not die.  Here's a picture of my dad and me :)

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