Whole life v. term insurance | In NewRetirement's Questions & Answers Forum

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QUESTION:
Whole life v. term insurance
I am 66, female and recently divorced. I was always told that term life was the way to go. Was this just for young families with the male spouse working? Now a friend, also in her 60s, tells me she has whole life insurance because of its cash value. How does this work as an investment? Any input would be appreciated.
	asked by SoCal, 2/11/2010
Categories: Life Insurance, Early Retirement

ANSWERS:
	Answered by: Jason B, 02/24/10 Overall Rating: Be the first to rate it.
The decision between getting whole or term life insurance is somewhat of a complex one. Term Life insurance is the simplest, and usually cheapest option. It provides a certain death benefit, nothing more, and if you should live past the term on the insurance program, you receive nothing. Whole or Permanent Life insurance is more of an investment program. The premiums are much higher but it has the "cash value" your friend was referring to. Premiums you pay on the Whole life policy are invested and grow, forming a sort of "Savings" account that you can then borrow against. You can find more details at the following article: http://articles.moneycentral.msn.com/Insurance/InsureYourLife/TheRagingDebateOverTermvsWholeLife.aspx Which one is right for you is a question you must decide in consultation with financial professionals and your loved ones. But one of the things to consider when looking into life insurance policies is the possibility of doing a Life Settlement. NewRetirement has more details on these programs at the following link: https://www.newretirement.com/Services/Life-Settlement.aspx Login to rate this answer:
	Answered by: crons79, 03/11/10 Overall Rating: Be the first to rate it.
Term is used so you can get a lot of coverage to replace income for a set period of time. 10, 20, 30 years. Whole life is used as permanent insurance for final expenses if you live beyond your working and raising family years. For more info you can check out http://www.talktoron.com Login to rate this answer: