- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Term Life vs. Whole Life
Posted on 7/28/10 at 10:55 am
Posted on 7/28/10 at 10:55 am
I'm almost 30, and don't have life insurance with the exception of a line of duty situation.
Which is the better option? Should I have both?
I'm pretty clueless about these things
Which is the better option? Should I have both?
I'm pretty clueless about these things
7
Posted on 7/28/10 at 11:03 am to Glock17
I've always heard term life is better, but I'm not sure.
Posted on 7/28/10 at 11:03 am to Glock17
I have a ticket that I need to get fixed.
I'll sit down and talk to you about it one afternoon if you are interested in a barter.
I'll give you a teaser of:
No.
I'll sit down and talk to you about it one afternoon if you are interested in a barter.
I'll give you a teaser of:
quote:
Should I have both?
No.
Posted on 7/28/10 at 11:06 am to Glock17
Term Life is what you want. Whole life is a total rip off.
Posted on 7/28/10 at 11:11 am to Glock17
FWIW, term and whole life are not "competitors" as most people unknowingly believe and have been told. Whole life is supposed to be used to cover permanent expenses. Term life is supposed to be used to cover temporary/expiring expenses.
The bulk of our life insurance needs should be covered with term life (mortgage, salary/income, child's future education expenses), but everyone needs at least some whole life.
Also keep in mind that the money you put into term life will likely never be seen again by you or your heirs. 98% of term life insurance never pays out, and the insurance company keeps it all. Nonetheless, it is needed to protect yourself and your family against the expiring financial expenses. But I do find it funny when people say whole life is a rip-off, yet in the same breathe they tell you to buy term life. It's quite ironic.
Term life is for "just in case" situations. Whole life is for, "no matter what, this will happen eventually" situations.
The bulk of our life insurance needs should be covered with term life (mortgage, salary/income, child's future education expenses), but everyone needs at least some whole life.
Also keep in mind that the money you put into term life will likely never be seen again by you or your heirs. 98% of term life insurance never pays out, and the insurance company keeps it all. Nonetheless, it is needed to protect yourself and your family against the expiring financial expenses. But I do find it funny when people say whole life is a rip-off, yet in the same breathe they tell you to buy term life. It's quite ironic.
Term life is for "just in case" situations. Whole life is for, "no matter what, this will happen eventually" situations.
This post was edited on 7/28/10 at 11:21 am
Posted on 7/28/10 at 11:14 am to JPLSU1981
quote:
Also keep in mind that the money you put into term life will likely never be seen again by you or your heirs. 98% of term life insurance never pays out, and the insurance company keeps it all. Nonetheless, it is needed. But I do find it funny when people say whole life is a rip-off, yet in the same breathe they tell you to buy term life. It's quite ironic.
I'm ok with this because it means I lived to be older than 56.
I want to live past 56, fyi.
Posted on 7/28/10 at 11:16 am to Tiger4Ever
Term. The agent makes like 3x's more if he/she can convince you to buy whole.
Posted on 7/28/10 at 11:19 am to Glock17
Whole life for the amount of coverage i needed was out of my price range. I ended up getting 30yr term with $750k payout. I have a small policy through work that as long as I am there will pay out enough for burial expenses +. I figure after I am 60 I shouldn't need much if any coverage. If I do then I failed somewhere.
Posted on 7/28/10 at 11:21 am to JPLSU1981
quote:
The bulk of our life insurance needs should be covered with term life (mortgage, salary/income, child's future education expenses), but everyone needs at least some whole life.
You gave reasons why someone should buy term, but no reasons why someone needs "some whole life." Please provide support for your statement regarding whole life. Why is it necessary?
Posted on 7/28/10 at 11:26 am to bayoudude
You made the correct decision, quoting my wife who was an insurance agent "Every time I sold a whole/universal life policy, I felt like I was robbing someone."
Posted on 7/28/10 at 11:26 am to hen
To cover permanent expenses (funeral, burial, revolving credit) as well as a better way to transfer money to heirs federally tax-free.
Posted on 7/28/10 at 11:28 am to JPLSU1981
quote:
Whole life is supposed to be used to cover permanent expenses. Term life is supposed to be used to cover temporary/expiring expenses.
Where are you getting this from?
Posted on 7/28/10 at 11:31 am to Y.A. Tittle
quote:
Where are you getting this from?
Whole = forever
Term = temporary
Most of our life insurance needs should be covered with term, but we as humans do have permanent expenses, which term does not and will not cover because the term insurance will expire before they happen.
While I obviously believe term covers most of our needs, I think many people do not understand the difference between term and whole life. Term life is like renting insurance, whole life is like buying insurance.
This post was edited on 7/28/10 at 11:35 am
Posted on 7/28/10 at 11:33 am to JPLSU1981
quote:
Whole = forever
Term = temporary
Those terms aren't referring to what the benefits are for, you realize? Or it seems, you don't.
Posted on 7/28/10 at 11:36 am to Y.A. Tittle
quote:
Those terms aren't referring to what the benefits are for, you realize? Or it seems, you don't.
Posted on 7/28/10 at 11:39 am to JPLSU1981
quote:
To cover permanent expenses (funeral, burial, revolving credit)
Seems like even minimal saving over a lifetime could accomplish the same goals at a lower cost.
Posted on 7/28/10 at 11:41 am to JPLSU1981
You purchase "Term" Life for a specefied time period (the term).
You can purchase whatever benefit payoff you choose (be it something to just cover things like mortgage and funeral expenses, or an amount that will allow your wife and kids to live comfortably for the rest of their lives, if you kick the bucket).
A "Whole" Life policy, will pay out benefits whenever you die.
The nomenclature has nothing to do with what one intends as the purpose of the benefits.
You can purchase whatever benefit payoff you choose (be it something to just cover things like mortgage and funeral expenses, or an amount that will allow your wife and kids to live comfortably for the rest of their lives, if you kick the bucket).
A "Whole" Life policy, will pay out benefits whenever you die.
The nomenclature has nothing to do with what one intends as the purpose of the benefits.
Posted on 7/28/10 at 11:41 am to hen
quote:
Seems like even minimal saving over a lifetime could accomplish the same goals at a lower cost.
This!
Posted on 7/28/10 at 11:43 am to Y.A. Tittle
quote:
You purchase "Term" Life for a specefied time period (the term).
You can purchase whatever benefit payoff you choose (be it something to just cover things like mortgage and funeral expenses, or an amount that will allow your wife and kids to live comfortably for the rest of their lives, if you kick the bucket).
A "Whole" Life policy, will pay out benefits whenever you die.
The nomenclature has nothing to do with what one intends as the purpose of the benefits.
I'm not sure what you're trying to get at, as you just repeated what I've already stated above.
Term life is for temporary expenses, as it pays off if you die within the term, and it does not pay off after the term. It is best used for "expiring" expenses (cough cough: expenses with a term).
Whole life is for permanent expenses, as it pays off when you die, regardless of when you die. It is best used for permanent expenses that never go away.
This post was edited on 7/28/10 at 11:48 am
Posted on 7/28/10 at 11:47 am to JPLSU1981
quote:
Whole life is for permanent expenses, as it pays off when you do, regardless of when you die. It is best used for permanent expenses that never go away.
Such as?
Page 1 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News