Confusing information about selecting life insurance is normal.
The reality is that there is never one type of anything that fits every situation. For example, would you like to see your barber or hairdresser and have the same haircut as the man or woman before you? When in a restaurant, is there only one option to select?
Now let’s relate that back to the life insurance industry. Proponents out there say that 100% of the time, your best option is to “buy term and invest the rest.” That’s an excellent option for many people, but is it right for everyone?
On the flip side, you have the “Whole Life is the only way to go!” people and the “don’t ever buy whole life! buy universal life!” people.
There are benefits to term life insurance and benefits to permanent life insurance. The answer to the question of which policy is best for you depends on your need for insurance and what you want it to accomplish for you.
The other way to help you, as a consumer, understand what solutions are being presented is to understand the basics of temporary versus permanent insurance. Many people now use a do-it-yourself approach to finding the right policy for their situation.
The first one is called term life, which protects for a specific period of time, such as 10 years. (many options vary the time period) Think of term insurance as temporary insurance.
Just like term insurance, permanent life insurance offers numerous choices. Whole life can ensure you for your “whole” life regardless of how long you live. Your premiums and coverage amount are guaranteed at the age you obtain the policy, meaning that they will never change later in life.
Lastly, remember that most permanent policies have a cash value account that grows over time. This can be used to recover all or part of your premiums if you decide to close the policy.
The critical thing to remember is that nothing is as simple as a one size fits all solution.
Using a professional for advice can expand your understanding of how life insurance can benefit you.
Here is a reliable source for taking a deep look at life insurance, looking under the hood at a Do-It-Yourself system. This system allows you to add and subtract benefits, lengths of time, and other benefits that might have an appeal. It also allows you to build a policy aligned with your financial needs.
Many people have learned about the power of using the Safe Money approach to reduce volatility. Our Safe Money Guide is in its 20th edition and is available for free.
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