December 25th, 2006 | 
Author: 
chicken2008 asked:
Do you have term life insurance or whole life insurance? Or something else? I read that term is better to have. How much do you pay? I pay about $185 annually for my self and $115 for my daughter? I am just getting some opinions on this.
Right now I have Whole life.
Eleanor Stsauveur
Do you have term life insurance or whole life insurance? Or something else? I read that term is better to have. How much do you pay? I pay about $185 annually for my self and $115 for my daughter? I am just getting some opinions on this.
Right now I have Whole life.
Eleanor Stsauveur
Posted in Personal Finance | 
Tags: Insurance, Insurance Life, Term Insurance, Term Life Insurance, Whole Life Insurance
I don’t have anyone depending on my income so I don’t have insurance. Unless your daughter is a mother she probably doesn’t need it either.
Term is great if you want a lot of coverage for a time like 20-30 years in case you die while raising children. After you are over 50 if you don’t still have dependents you should have enough assets to pay your final expenses.
You don’t mention what type you have, or how much coverage you have, but you’re paying too much.
I pay $65 per month for a $1,000,00 policy. I have a bigger policy than most people because I’m young with 2 kids and potential for more in future years, my wife has no real marketable job skills and we owe a lot on our house. I wanted enough that she could pay off the house, plus buy one or two rental houses to generate income, plus have some other investments to generate income. Yes, this is term insurance, but in 20 years my financial picture will be different and I won’t need nearly as much coverage.
Whole life is bad.
I have three policies. A term, a whole life, and a variable life for a total of 600K. My wife has the same three policies for 500K and together we pay about $160/month for the 1.1 million combined (we’re in our early/mid twenties). We have three because as we age and accumulate savings we can reduce our life insurance.
As you age you don’t need as much insurance so term makes sense. Once your house is paid off and kids are through college you don’t have as many bills and your savings are more you can stop the term. Our whole life pays us our premiums back after 30 years, so it’s really like a free policy (and the return is tax-free). The variable life goes into the market or a set 5.5% savings account that we can borrow cash from at any time without penalty.
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