Types of life Insurance

kinds of insuranceThere are several different types of life insurance, but there is only one type that you should consider and that is Term Life Insurance.

Term insurance is affordable & flexible coverage that will suit just about anyone.

The one thing you need to understand about life insurance is that the longer the term of it, the more the premium and cost will be.

The longest term is  Whole life & T100 (term to age 100), and as the name suggests, it goes on as long as you live. It is also the most expensive type of life insurance, and can easily run you about 10 x the premium of a 10 year term policy.

I know that your initial instinct may be that you need permanent life long insurance. What is the point of having life insurance, if it is not around when you are old and more likely to die, you may ask.

The truth however is, that as good as that sounds, the higher cost of it, and inflation just doesn’t justify it.

A term 10 or 20 will cover all your needs just as well, and be more affordable for you, so you can buy as much term insurance as you actually need, without having to worry about breaking the budget.

Keep in mind that term life insurance is renewable, and also convertible to a longer term or whole life, so that option is always there.

The other day, a 40 year old asked me for a quote for 100k of Whole life insurance. The price for it was $1000/year.

I asked hime why wouldn’t he consider a 10 year term for 120/year, and he replied , as all of them do… “what about if i live longer than 10 years?

What??? Of course you will live longer than 10 years, he will live longer than 20 or 30 years , most likely until he is 75 or 80. So you know how much this 100k will be worth in todays dollars, if he keeps it until age 80? Very likely it would be worth between 10-20k.

So you are willing to pay $1000 of your hard earned money to an insurance company, so one day, when you doe an old man, someone can collect 20k? Makes no sense to me.

Please consider Term insurance, call me and talk to me to discuss how a term policy will suit your family needs.

Use the instant online “BEST RATE CALCULATOR” on the right and get an instant quote.

 

Leave a Comment: