What is the best type of life insurance to purchase?

demosjones Answered:
Term life insurance is relatively inexpensive because it only covers you while you're qualified AND it builds no value.Basically, the payouts are balanced out against the high numbers of subscribers who don't kick the bucket.Problem is, once you're no longer qualified (say, a job that provides term insurance is no longer your employer), you have NO coverage.Nor does any of your premiums build ANY value.Plus, term insurance kicks you out at a certain age, no matter how good your health (like 70).

Whole life actually builds value as you pay into it.It's not only an insurance policy; it's also an annuity.It's an investment.If you die before you've paid it to full value, it pays out the full value anyway.But even if you don't die, there is a point where it's fully funded, and you pay no more for it.BUT it's still yours.For all of your life.You can cash it in.Or you can keep it for your beneficiary to cash it in when you die.Because it does have value, you can also use it for low-interest loans.If you haven't completely paid off the loan by the time you die, the remaining loan amount is simply subtracted from the total payout.

Problem with whole life is that it's cheap if you start young.But waiting until 40 or 50, it gets pretty expensive in monthly premiums, because there's less time to build up full value.Still, it beats nothing if you live a good long life and don't kick the bucket until after 70, when you have NO insurance at all.

So, at your age, probably a mix of whole life and term insurance is best.Say, $250K in term since it's relatively cheap.And maybe $25K or $50K in whole life.Let's face it, the most important purpose of life insurance is to take care of your survivors if you die young.That takes a LOT of money to get through the year, to 5 years or so, to re-stabilize, what with mortgages, kids' colleges, and all the other normal living bills.But at 70 or older, you don't need as much.Mostly to take care of funeral expenses, and a little to help offset bills left behind, so whole life will handle that nicely, even though there's less of an amount.

jabbotuk Answered:
You are confusing insurance with assurance.The former is against a risk, whereas the latter applies to an inevitability (i.e. death).
Life insurance applies only to a term policy on a third person in whom one has an insurable interest.In other words, one would incur a quantifiable financial loss if the person were to die within the period of the policy, a typical example of which is lawyers insuring the life of the judge in an expensive litigation lest the judge die before the case has been decided.
Life assurance is a policy on one's own life for the benefit of heirs/beneficiaries.The normal consideration in life assurance is the professional opinion of a medical examiner as to whether the applicant is likely to live more or less than twenty years after the date of examination.
Whether insurance or assurance, it is always better to deal through an independent broker than directly with the underwiriters because the broker, as your agent, can broke the best terms for you.

car253 Answered:
Term policy with level premiums for 20 or 30 years with a level death benefit.

jjazz Answered:
According to Smart Money, you have 3 choices. 1) term life insurance (plain vanilla insurance)with it's low cost. 2) Whole Life ( has a savings component) and 3) the return of premium (which is a combination of the previous 2. Smart money recommends term insurance because of it's low cost and because you get maximum coverage at a low cost. For more information you can call this 888 913-9975.
They will be glad to explain the benefits in more detail. This may be especially good for you! less cash out of pocket!

Good luck!
J

StephenWeinstein Answered:
You are correct that you do not get back the money you pay into term life insurance.That is a good thing.Just make sure the term is long enough so that the kids will be grown when it expires and will not need "to be taken care of" if he is still alive then.You will lose much less money, because term insurance is so cheap.If you get whole life insurance at age 50, it will cost so much that, although you might back some, the amount that you will not get back will be many times more than the cost of term insurance.