Is Term Insurance Better or Wholelife Better?
Many today are still confused the difference between the term insurance and wholelife insurance. I have always thought that term insurance is not necessary and a waste of money. But I changed my mind recently. For most of us, in fact, we may not need whole life insurance at all.
Whole life insurance is particularly useful when you have a disabled child in the family. When that parents passed away, the wholelife insurance will ensure that the child receive proper coverage till the day he dies.
In other cases, perhaps term insurance is all they need. The payout can help pay for funeral expenses, and other situation. It is always good to have some kind of insurance.
Term insurance can go for a few years or on up. Some policies are renewable as time goes on, but once the children have grown and a good retirement account has been established, it might not be necessary to keep the term insurance at all.
This will be a judgment call of course, but it is not going to be the sole source of income if someone were to die early. Some who are of a charitable mind will have term life with the benefits going to charity until the day they marry or have children. Others find that they have a great policy at work, but they should remember this probably only covers death that happens on the clock. They need something more than that for their family.
