Any experience with life insurance?


It’s such a maze out there. I need help to narrow selections to the best for my little money. I think Term is most suitable because Whole life premiums increase...I think.



OhMyMe2, here's a Suze Orman website that can help sort out whether, how much, and what type of life insurance you might need:

Many financial advisors don't usually recommend whole life insurance (except in specific circumstances) because that type of life insurance is a combination of actual life insurance and investment, but the investment returns are typically quite low compared to other investment opportunities. Combined insurance and investment products (e.g. whole life insurance) can be confusing due to the different goals of each product, so I think its usually better to keep them separate.
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Reply to bicycler

It will depend on your age and the type of policy. Are you in your 20s or over 65? Interest in policies is about 2%. Policies take time to mature. Interest in a money market account if you can stand some volatility last year was 8 to 10%
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Reply to MACinCT

Oh, what are your thoughts about why you want life insurance, and how old are you?

Are you looking for money for burial expenses, to leave your heirs something, to cover your income for your loved ones when you die?
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Reply to BarbBrooklyn

Thanks to all that responded. I’ll proceed to the suggestions.
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Reply to OhMyMe2

I think that it depends on your situation and whether you have children that you need to provide a future for or whether you need just enough life insurance to cover your funeral expenses.

If you belong to a national fraternal organization or a church or synagogue, they might have an fraternal or denominational insurance company that you can purchase life (or health) insurance from.
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Reply to DeeAnna

Life insurance is designed to pay off outstanding debts and provide enough funds for remaining family to maintain their lifestyle, raise children, cover funeral expenses etc. Some feel it should be used to provide an inheritance too.

If you have a mortgage and it will be paid off in 7 years, then a Term 10 policy for the current balance on the mortgage will allow the mortgage to be paid in full and your beneficiary will get any difference in the declining mortgage balance or the full amount after the mortgage is paid off.

Whole Life can have level premiums or step up premiums (start low and increase).

You can combine Term and Whole Life Insurance to best meet your needs.

Your best bet is to talk to an life insurance broker or agent and determine how much insurance you need (if any), how long you need it for and who the beneficiaries will be.

Keep in mind, if you have no outstanding debt and do not anticipate generating any debt (car payment, mortgage etc), or can fully cover any debt with other assets, you do not necessarily need life insurance. Have you prepaid for your funeral? If you have a spouse and or dependant children, or other dependants, then you need to calculate how much insurance would be needed to replace your income after you die.

Life insurance agents can calculate how much insurance you may need. they have access to spreadsheets with formulas that can do the calculations while looking at a variety of scenarios.

Keep in mind too that there are other forms of insurance that maybe worth looking into; disability, long term care, being two that are often overlooked.
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Reply to Tothill

Term is cheaper because premiums increase as you age. Find an independent insurance agent in your area to help with the process.
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Reply to jjariz