I have to admit I am VERY NIEVE!! If you haven't already noticed, I am one that has to learn things on my own. Not because I don't trust others, honestly I just don't have alot of information. Both life insurance and retimrent and things I have had to learn about on my own. Retirement will be saved for a later post but for now we will discuss the insurance.
Though my work I was able to get very cheap life insurance, as in cents per pay check, we we opted to get that. After reading and listening to Dave Ramsey's radio show, he is very particular into TERM insurance. Pretty much he stays that whole life is a scam. I was only able to get term life at work so I didn't think much of it. So now it is time to do my research and understand WHY term is better and if whole is really so bad?
Whole Life:
Whole life is insurance for your whole life. Sounds pretty good don't you think? I found this article from the Wall Street Journal. The Whole Truth About Whole Life
From here I learned a few things about WHOLE LIFE
-Many people aren't good candidates for whole life.
- Your agent has an incentive to sell whole life policies
-Policies can have other high fees that will eat into the value of your account
- Costs can go up and dividends can go down.
So what better way to understand it then to get some quotes
So Here is my information about WHOLE LIFE
Sorry the image is so bad, I tried to copy it from the website but it didnt work, so I used my phone! :)
These are the rates from MetLife for BASIC insurance.
WOW!! I'm not sure if anyone else is shocked, but SERIOUSLY at $70 a month for $20,000 obviously not the insurance I want for my family.
Term Life
Term life insurance is for a TERM. At first this was bugging me, don't you want insurance until you die?
--This thought was on my mind for quite a few days, so, I asked my daddy. I asked "what is a good term to have term insurance for?" He said in his own little way, "until your kids are grown and you don't need the money anymore."
DUH!!! My brain clicked. lol One DOESN'T need insurance until they die, you only need it until your family can be supported with out you! YEAH i feel smart!
Normally the best place to buy life insurance is though work. It is least expensive and there are alot of easy options. However to keep things consistant lets look again quotes to compare.
Is anyone else out there SHOCKED!!! Much less then what we looked at before... ;)
So lets compare:
WHOLE LIFE TERM LIFE
Female age 50 Female age 50
$84 a month OR $53 a month
$20,000 coverage $500,000 coverage (15 yr)
I have to say. I'm sold on TERM!
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