December 4th, 2006 | 
Author: 
Patti F asked:
I am 54 and my husband is 58. WE have a home we owe $200 on and about $20k in credit card bills. No kids at home-all grown. Should we go with term life or whole life and how much for ow long? Thanks
Cherry Ogasawara
I am 54 and my husband is 58. WE have a home we owe $200 on and about $20k in credit card bills. No kids at home-all grown. Should we go with term life or whole life and how much for ow long? Thanks
Cherry Ogasawara
Posted in Insurance | 
Tags: 20k, Credit Card Bills, Insurance, Insurance Life, Term Insurance, Term Life Insurance, Whole Life Insurance
What’s the GOAL of the insurance? What are you trying to ACHEIVE?
First set the goal. Then, consider ALL possible solutions, which would include quotes on term AND whole life, and you’ll have to factor in saving and investing, also.
Most of the time, it’s cheaper to buy term, and invest the difference between the term insurance, and the whole life insurance.
As mentioned, it depends on the need.
If you are just looking to cover your debts, go with term. For insuring your debts, take a look if you are already creditor insurance through your lender, a lot of people have it a don’t even know about it. IF you do, look at getting an individual term policy then cancelling the creditor insurance. (Check out these for the reasons why: )
If you are using for estate/tax planning when you pass on your estate to the grown kids you’re likely better off going with whole life. If you have a family history where you live a long time (like I do), whole life might make sense since a lot of term policies expire around age 85 and become very expensive at that point.
You might end up looking at a mix of both (a little whole life to cover funeral expenses with enough term to cover your debts).
Your best bet is to contact an insurance broker that has access to not only multiple companies, but also who has access to term and whole life. They can help you decide which is best for you and decide how much you will actually need.