Whole Life Insurance: What You Need to Know
In whole life insurance, benefits and premium cost are fixed, premium cost is much higher than in term life insurance, and often the expenses of whole life insurance eat up any potential investment.
Published Dec 04, 2018
Whole Life Insurance: What You Need to Know
For most of us, term life policy will be a much better option. But if you are wondering about whole life insurance, here are few key points to remember:
- Your benefits and your premium cost are fixed for the duration of your life.
- The premium cost for a whole life policy is significantly higher (even up to 10X the cost of a term life policy).
- Because of the high premium cost, you may be overpaying for a product you don’t really need.
- Whole life insurance is often sold as an ”investment” but in reality, the expenses will most likely eat up any interest earned. Never buying a whole life policy based on the “investment” factor.
Today's tip brought to you by Mvelopes and Money4Life Coaching.
Originally published December 05, 2018.
