Updated over 8 years ago on . Most recent reply
Life Insurance ( term vs whole life) which one is better?
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Both policy types are tools for your tool box and it really depends on your budget and what you are trying to accomplish financially. Unfortunately there is no right or wrong / good or bad on comparing Term and Whole Life other than I'd be a little wary of a door to door life insurance sales rep.
Term is the least expensive option but has it's limitations especially the older you get. You could out live the price fixed part of the policy and it could become very expensive when you are older and more difficult to insure with a replacement policy.
Whole Life (Permanent) is more expensive on a monthly cash flow basis but funded the right way will earn cash value over time which could offset or actually grow larger than the amount you paid into the policy.
I typically set up a Term policy if someone is trying to get coverage for the near future as inexpensively as possible. I've set up some whole life policies based off the concept of paying off the primary home mortgage 6 to 11 years early on a 30 year mortgage. In this concept of protecting the mortgage on the short term if someone dies they have the death benefit to settle the mortgage - long term the client has an option of paying off their mortgage early with the cash value of the policy.
It really just depends on your overall financial plan. Unfortunately I can't help you in your state but ask around and I'm sure a local agent could offer more detailed advice for your particular situation.