Life insurance

What's better? Whole life or universal life? Can someone explain the differences to me?

Re: Life insurance

Term life

Life insurance

I have both... Depends on how much how long, children etc...

Life insurance

I have term because i figure in 20/30 years my house will be paid off and hopefully ill have a decent 401K to use if something happens.

Re: Life insurance

Term Life- purchased for 5/10/20/30 yrs. Flat rate during that term and solidified for the term you choose.
Once the term is over, the policy can renew at the age you are at that time and rate increases. no cash value and the most economical type of life insurance.

Universal Life- flexible policy that has a combo of term and whole. Its a flat rate as well but can change (based on your needs if needed) and builds cash value since there is interest in the policy (better than banks right now). Allows for you to borrow against it as well. That is called a living benefit.

Whole Life- flat rate during the lifetime of the policy. Builds cash value and endows at age 100. Typically the costs are higher in this type of policy since the premium will never change.

All life insurance is based on eligibility and offers non tobacco, preferred and super preferred rate.

There is no right or wrong on what you choose. Its what is right for and your needs.

Message edited 10/19/2016 11:50:48 AM.

Life insurance

I have a whole life policy from an old job. It's like 200k but minimal payments per month. So if I die at 40, 60 or 80 my family gets the money. It make also then make sense for a term life policy to cover you and your DH and kids so that if you die in the next 20 years they'll get 2m on top of the 200k. So it may make sense to have more than 1 policy.

For example my parents had term policies so if they died when kids were young the spouse would be taken care of. Now that they're retired they don't and my siblings and I are older and would be okay. So whatever works for you.