Term Life Insurance-The Best Life Insurance for the Money

Written By: Mike Carselle on May 11, 2010 No Comment

We hear a lot these days about the necessity of adequate life insurance to secure the people we love, but people often wonder what is the best kind of life insurance for them? There are two general types of life insurance-whole and term.

Whole life insurance is the more expensive option and gives you more features. With whole life, the policy not only pays a death benefit, but it also builds cash value while you pay into the policy and beyond. This can either be through a savings plan or investments in stocks, bonds or mutual funds.

A term life policy is far less costly and a much simpler policy. A term insurance policy wont build cash value, instead it will just provide your family with a cash payment upon your death. Also, it typically only runs for a pre-determined term, like 15 or 20 years.

For most people, term life insurance is the best kind to buy. The reason is that you can typically gain far more coverage for your loved ones at a far lower cost than with a whole life policy. Since the main purpose of life insurance is to secure your family in case something happens to you, this is normally the best kind of policy to buy.

Of course, the argument for whole life insurance is that you will gain an asset with cash value that you can later take out a loan against or cash out, but the drawback here is that a great deal of the money you invest in this policy will go toward policy maintenance fees and that will make it very hard to figure out what kind of a return you can expect from your investment. This is why the majority of people will be end up better off financially just investing directly into stocks, mutual funds, IRAs or savings.

So, the wisest move for most of us is to invest in term life insurance, where you’ll gain far more value on your purchase. For example, a healthy 30 or 40 something person can typically get a term policy with $500,000 worth of coverage for around $20 or $30 a month. That same amount of coverage in a whole policy will run you several hundreds per month. If you take the difference in cost between the two policies and invest it directly into a different financial vehicle, you will end up a lot better off down the road.

Compare the lowest rates on term life insurance quotes and get started today on the path toward securing your family’s future at www.lifeinsurancequotetoday