When talk about life insurance, they’re 2 types of life insurance. The first or the usually what the insurance agents try to convince you to buy is the whole life insurance. The second or the usually what the insurance agents will not introduce to you at all is the term life insurance. Which one is better? If you ask me, my answer to you is the term life insurance. Of course, that is for me and not for you. Let’s look at the reasons why you want to buy whole life or term life insurance. After you know about them, you can analyze and decide at your own.
Why I want to buy whole life insurance?
- I want to get insured.
- I want to make investment and I think the insurance company can do a better job than those professional investors who work for mutual fund’s company.
- I want to force myself to save. I can’t control my spending if I have some money in my bank. I need insurance to help me to keep my money.
- I afford to pay the $5K premium to get insured of $150K.
Why I want to buy term life insurance?
- I want to get insured.
- I cannot afford to pay $5K to get insured of $150K. I can only afford to pay few hundred bucks.
In short, if you’re lazy to manage or you don’t know how to manage your money well, whole life insurance is for you. If you want to and able to manage your own money well, term life insurance is for you. You invest the difference in other stuff such as mutual funds, stocks and etc. Also, if you think those insurance company can do a better job that mutual fund company (which I disagree), whole life insurance is for you.
So, what type of life insurance you want to buy? Still whole life insurance? or term life insurance?
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