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Does it pays to buy whole life insurance when you are in your late 20s?
Wiki User
∙ 18y ago
Excellent question!! It will be interesting to see the answers that result. Let me say this..Whole life (WL) by some is considered an investment and I am willing to bet that all the arguments that come against WL will be towards that point. Life insurance is life insurance. Term or WL? Question 1) DO you want to have life insurance in force when you die? If you are going to die in your 30's or 40's than by all means buy a term policy. If you don't know when you are going to die, buy whole life 2)If you can afford it. Right now you probably do not have a lot of financial obligations and probably do not need much in insurance coverage, but you will. Right now you like most 20 year olds are probably burning thru enough money in a month in waste spending that you could in fact buy a very attractive WL policy so that when you do need it, you will have it! You will have already accrued much cash value, locked in on a younger age premium and more. Some more points to consider WL premiums can be structured to go down over time. Term is Guaranteed to go up! (For the "buy term invest the difference" crowd) WL has guaranteed cash values the market has NO guarantees! WL has a waiver of premium that says even if you buy insurance today and get perm disabled tomorrow, you will never have to pay your premiums again and the policy will stay in force and the cash value will still grow. There is a lot to consider, it is what is right for you and what you believe and can afford and what your reasons for buying insurance is for. I sell both and sell a lot of it. Hopefully this gives you some food for thought. One last thought for you...I bought WL when I was 17. Today I am 40. I can not buy term today for what my premiums are for the WL and I still need the insurance now and in the future. Also, I have borrowed on the cash value to buy a house...twice. If I had bought term back then,,,,I would be losing. Also to note, I have rounded off my portfolio with a number of term policies. Regards, 4lifeguild.com
Wiki User
∙ 18y ago
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What kind of life insurance should you get?
When deciding what type of life insurance to get, someone can choose between term and whole life insurance. Term insurance pays out when a person dies and whole life can be cashed in if you need the money early.
What is the major advantage of term life insurance over whole life insurance?
Cost. Other than that, there are no advantages. Whole life insurance lasts your whole life. It pays upon your death a predetermined amount. Once the designated term on term life expires, you have no more life insurance. Term will be significantly cheaper depending on your age.
What is the difference between term life insurance vs whole life insurance?
A term life insurance is during the insurer's life only. When he or she is gone, then the insurance ends. The whole life insurance on the other hand has what the term life insurance covers plus more.
What is the difference between life insurance and term life insurance?
Life insurance is a more general concept that may refer to either whole life insurance or term life insurance. Whole life insurance gathers value the longer you have it, whereas Term life insurance does not obtain any value that you may use before you die. Term life insurance only pays out when you die.
Which of these is an element of whole life insurance?
under this type of policy, the insured pays premiums for his or her entire life :) thankkk emery.s (;
Who pays for the physical that is required by a life insurance company?
Life Insurance Company
What are the benefits of whole vs term life insurance?
A term policy is life coverage only and on the death of the insured it pays the face amount of the policy to the beneficiary. Whole life insurance combines a term policy with an investment component usually used for retirement.
Who pays for the funeral if the person has life insurance?
The insurance company.
Is there insurance that pays mortgage if one of two owners dies?
Yes. It's called Mortgage Life Insurance or Credit Life Insurance and is sold by the lenders. But if you can qualify (no outstanding health problems) it may be cheaper to get a decreasing life insurance policy or a whole life policy on your own.
A life insurance policy that pays whether the policyholder lives or dies is called?
A life insurance policy that pays whether the policyholder lives or dies is called a whole life insurance policy. This type of policy provides coverage for the policyholder's entire life and typically includes a cash value component that grows over time.
How do I get on a limited pay life insurance plan?
Limited pay life insurance is really just a form of whole life. The difference is that the policy holder pays premiums only for a preset period of time, after which they enjoy the benefits of the policy for life. Policy holders can also borrow against this type of policy if needed, and it pays dividends.
What type of life insurance pays a dividend?
Group life assurance
