quote:
3. I'm not "advocating" for whole life insurance, so I'm not sure what your point is in regards to me. I'm just saying people make themselves look silly when they say term is "better" than whole life ... just as people make themselves look silly when they say whole is "better" than term. Neither one is better, as they are for different things.

I agree they are diff, but for 99 percent of people FINANCIALLY speaking TERM ins is better for you.
WL can get very expensive.
I used to sell all three.

The need for HIGHER face amount for most people is needed more so when you are in you child rearing days.
Unfor thats when most people have MOST expenditures.... so premiums play huge part in the affordiablitly that most people face.

Besides ins companies offer 30 yr terms now.. I have one and I hope to God im in that 99 percentile you spoke of earlier of a claim that never gets paid.

This post was edited on 3/14/10 at 9:07 pm

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Posted by kfizzle85

Member since Dec 2005

22022 posts

Posted on 3/14/10 at 9:23 pm to TIGRLEE

Thank you. The expected return on a term (or health, or car, or fental, etc) is 0 or negative. The expected return is inherently what defines something as an investment. I am giving you money with the expectation of that + some return = investment. I am giving you money with the expectation of getting none of it back = not an investment. No rational human expects a return on a term policy. That's what makes it insurance, that's what makes it a hedge.

Whole life entails you constantly outflowing premiums with the expectation that, in the future, you will get them all back, and then some [return]. Your expected return is therefore, not 0 or negative (and hence, why an IRR/NPV calculation is necessary, despise the unbelievably nonsensical claim that it is irrelevant). That's what makes whole life, in substance and in form, an investment, and a fricking terrible one.

This post was edited on 3/14/10 at 9:27 pm

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Posted by DeniseM

Member since Dec 2009

16 posts

Posted on 3/17/10 at 9:09 am to Alan Chavez

There are two basic life insurance classifications – whole and term. While whole life insurance is lifetime insurance, it always has an investment component attached to it, because of which premiums can be high. On the other hand, term life insurance covers you for a pre-determined period of time. Since it does not have a cash value linked to it, it is very affordable. Variable and universal are sub types of whole life insurance. Life insurance is a very personal purchase based on individual criteria. While whole life may be just right for your neighbor, term life may really be what is right for you. It is difficult to help you without understanding your requirements. I suggest that you read through informative resources such as Life insurance 101 to understand the subject of life insurance better.

Denise at AccuQuote
Disclaimer: I work for AccuQuote and this is my personal opinion.

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