Life Insurance Question

redhen

Kiss My Grits...
Premium Feather Member
11 Years
May 19, 2008
35,106
192
458
Western MA
There was a thread on here a while back about life insurance...and it had a lot of good info. I cant seem to find it now.. :rolleyes:
So my question is.. WHAT is the best type of life insurance to get? Whole life or term... or??..
We were offered (from NY Life) a whole life policy (a $100 grand policy) for like $30 something a week..
Is that a good price? Its on my husband,.. hes 40 yrs old with no health problems.
What exactly IS the whole life? (the broker said something about borrowing against it in the future if we need it??.) What is the difference between that and term ins.?
Thanks for any info..
Oh,.. is NY Life a good company?
 

hemet dennis

Songster
8 Years
Nov 9, 2011
3,866
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228
Hemet,Ca. 20+chicken years
My Coop
My Coop
Term is you renew each year with a new policy and the terms can change
Whole life is one policy for his whole life. The company is going to pay the $100,000 at sometime they're betting that they wont have to pay it for a long time and you're betting that they will have to pay it soon.
 

thaiturkey

Songster
9 Years
Feb 22, 2010
2,390
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Thailand
Term assurance doesn't pay unless the policyholder dies during the term of the policy.

Whole life assurance continues until death, provided that you keep paying the premiums. It pays only if you die while cover is in force.

Endowment assurance pays out if you die during the life of the policy or at a predetermined date if you survive until then, provided that you keep paying the premiums.

For any given sum assured, the first costs the least and the last costs the most, reflecting the value that each offers.

The second and third can be without or, for an increased premium, with participation in profits.

You choose which you need and tailor the sum assured to what you need or can afford.

Whether or not the offer you have is good value depends on your husband's age, which you have mentioned, and his life expectancy. Illness and old age are not the only factors; he might die in an accident. Multiply the weekly premium by how long your husband hopes to live and compare it with the sum assured. Remember that he may not ant to continue paying after he retires. Then read the conditions of cover carefully.

I would be inclined not to buy direct from an insurance company. I don't know how this is done in the US but in the UK there are Independent Financial Advisers who are closely regulated and bound by law to offer you the best value (not necessarily the cheapest) products on the market. They don't charge customers but take a commission from the insurance company. You won't get cheaper by going direct to the same company that the IFA recommends. In other words, the impartial advice is free to you.
 

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