What is the best guideline in determining what kind of life insurance to get?

How do you know which type is best for you, and which type you should purchase?

Asked by Beverly

3 Answers

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Answered by Claudia L. Schaffer, Insurance Agent in Gardena, CA
It depends on why and what need the insurance is needed for. When my daughter was young I had 300,000 Term Life policy 25 years. I still have $75,000 of Whole life. Both were to make sure my house was paid offer and pay for my daughter's education In case I lived and did not need the Term coverage addition, the Whole Life will any estate taxes and some for my kid if any is left. What each person needs and what type and how much they must a they make based their need now how they want to fund them.

I believe that each of us should have some Whole Life. Term Life rates increase as we age and getting coverage will always depend good health. Whole life is always more expensive than Term Life at any age, but once have Whole life the premium never changes. | 11.02.15 @ 22:25
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$commenter.renderDisplayableName() — {comment} | 12.05.16 @ 04:51
Answered by Darius Slade, Health Services & Management in Richland, WA
Hi Beverly,
What is the best insurance and the best type? May be the same question. 

There are a variety of insurance products available.

I recommend first asking: Who's being insured and what loss/losses are you trying to protect yourself against, and for how long? Answering these questions and some others- like what can you afford?- will help guide you to the right insurance products. Some of those products are: term life, whole-life, variable and universal life which are designed to address specific needs for those seeking insurance.

I recommend working with a local insurance professional who will actively listen to your concerns. He or she should recommend appropriate and affordable products to meet your concerns and needs.

So the best insurance is the product(s) that meets your need for insurance coverage (addressing those questions I mentioned), and is affordable.

Beverly, I hope my answer was helpful.

Darius

| 11.03.15 @ 00:37
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$commenter.renderDisplayableName() — {comment} | 12.05.16 @ 04:51
Answered by Richard Eddy, Financial Adviser in La Verne, CA
When asked this question, I like to tell people that the best kind of like insurance is the kind that is in force when you die! So in a perfect world (where you didn't have to worry about actually paying the premiums) you would always buy a permanent policy since you'd know it would be in force when you died. Term policies are designed to provide coverage for a specific period of time (the "term"), after which they essentially go away, no longer providing coverage. Now, since we don't get to live in a perfect world, and we do have to pay premiums, and since permanent life insurance typically has premiums that are much higher than term insurance premiums, we have some tough choices to make.
For me and my clients, it boils down to cash flow and long-term costs, and balancing the two. I'll let you in on a little secret: term insurance, over the long term, is more expensive than permanent life insurance! People will argue with me about this all the time, but the math proves I am right. When you calculate total premiums paid out to life expectancy, term is actually MUCH MORE expensive. Now, that's probably a topic for another day, but it's an important concept to consider in light of your question. So...cash flow vs. long term cost...that's the balance you need to consider, and much like others have posted here, often a balance of both term and permanent coverage is appropriate.
The best advice I can offer you here is to seek out a qualified professional who understands the concepts I've laid out here, and let them help you make a decision. | 11.04.15 @ 16:02
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$commenter.renderDisplayableName() — {comment} | 12.05.16 @ 04:51
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