Term Vs Variable Life - General Question

[jrwpmw]

What is the name of your state?MO

I know it's often debated, and I've talked to several 'professionals' who vastly disagree. So, I would appreciate your input.

IN GENERAL - which is the wiser insurance - Term or Variable?

In PARTICULAR - I'm 42 and into year 8 of my 20 Term Life. I believe that I can keep paying (much higher preminums) on that policy after 20 years to keep it active. Within the next 10 years, I plan to be debt free - no house payments, kids college paid for, etc. I do have other saving vehicles too - CD, 401K, mutual funds, etc.

In my case, I have been advised that Term is the way to go, and that the variable/whole life stuff is a waste of money. Yet another professional said variable is the way to go - as some of the money goes into funds that I believe he said grow tax free.

Again - I appreciate any and all comments!

 

[cbg]

There is no right or wrong answer to this question; it depends on what you want the policy to do.

If you are looking strictly for a death benefit and are not particularly interested in having it grow (and do not mind paying increasing premiums) then there is nothing wrong with term life.

But if you are looking at the policy as an investment, then you definitely should go with a whole life policy. A term policy, by definition, will never be more than the face value and in the large majority of cases cannot be cashed in until death.

Whether you can keep a 20 year term policy active after the end of the 20 years depends entirely on the wording of the policy. Not all of them will do that.

 

[JETX]

"IN GENERAL - which is the wiser insurance - Term or Variable?"
*** Sorry, but this is NOT the 'insuranceadvice' website.

If you have a LEGAL question, please ask it. If you have a 'which is better' question, take it to those that are knowledgeable about that issue.

 

[terry32561]

Variable?

Did he also explain that variable you can lose every dime you've put in? If your kids are grown and you have another retirement venue definitely go term.

 

[JETX]

Did he also explain that variable you can lose every dime you've put in? If your kids are grown and you have another retirement venue definitely go term.

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[ACS]

Hi cbg,

Thanks for your input to this posters thread. I found it helpful. I TOO WAS going to post (on a new thread) >>>that after putting in $4197.60 for a year in a variable life policy, my annual statement showed that I paid THEM $2005.00 for: cost of ins., administrative, mortality/expense and rider charges. I though I would get a 2nd opinion, for my opinion, that I am getting the short-end of the stick.


Since this is not a legal question, can you recommend a web-site that would be helpful regarding these types of questions?

Thanks,
ACS

 

[cbg]

It's been quite a few years since I handled any insurance other than employer-sponsored group plans, but try this one: www.insure.com.

It does not (or at least it did not) have forums like this one, but there is quite a lot of information on it and you may find additional information there.

 

[ACS]

thanks cbg!