Whole or Term Life Insurance?
Term and Whole Life insurance are very different policies. So, are you wondering what is better? Most people would probably say that term life insurance is better, but not necessarily, it depends on the situation. No blanket policy’s always going to be the best. So for most people that are over the age of 65 or even especially 70, a Whole Life policy is going to be a better bet. The reason being is that it’s going to continue until your death. So it will protect you even if you are 86 years old. At that age, you would no longer be able to get insurance coverage. Also with Whole Life, you don’t need to worry about an expiring term, and so these are a big deal. The older you get; the more security you want with your policy.
What are the Advantages of a Term policy?
Now, the advantages of term policies are that they have more extensive coverage policies. So if you’re looking for a $200,000 to a million-dollar policy or more, then term policy might be what you want to look at. Term policies are much harder to qualify for. You have to be in much better health. Generally, you can only have three or fewer prescription medicines, in some cases, no prescription medicines. Also, if you’re on one stronger prescription medicine like gabapentin or something like that, then they’re just going to decline you. On the contrary, you can be on blood pressure or cholesterol medications, or even mild anxiety or depression medication would be fine. Also, medications for mild thyroid conditions are okay with term whole life insurance. It’s is quite a bit easier to get approved for those.
You definitely want to sit with an agent that’s going to have access to a lot of company options. That way you have the best chance possible of getting the lowest price since there are so many companies. Insurance companies’ prices do vary based on their actuarial tables. You’re going to want to shop around. So just make sure that it’s an agent who has lots of access for you.
When is Whole Life a Better Policy?
So, if you’re over the age of about 65 or 70, Whole Life might be the best bet. However, we have lots of clients that are 70 to their mid-70s and we end up doing a term policy. However, they can get very expensive for those large coverage policies later in life.
Now if you are between the ages of 20 and 50, there’s a very good chance that you’re going to want a term policy. Perhaps you want a 30-year term policy and larger coverage. If you are between the ages of 20 and 40, you might opt for a Return of Premium Term policy. You could try possibly up to the age of 50 as well, but the prices do start to go up quite a bit between 40 and 50. However, it’s worth looking at, depending on how much coverage you want.
So we hope that this has been helpful. We’ll be happy to answer some questions for you, depending on your situation, we could make a recommendation for you and tell you what your options are, what the costs are, and then you can decide from there just what you want to do.
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