Term of Whole Life life insurance? I don't know which type I should purchase. 2 children and a budget.?

Question

I am a mother of 2 and almost forty years old and still do not have any life insurance. I just want to have enough to pay for my funeral and pay off whatever bills I may have outstanding. I think a 50,000 $ policy would be more than enough, but I don't know anything about either types of insurance. Does a person pay for this until they die or only until they reach the amount purchased if they live that long. Does the monthly payment stay the same forever or increase with age? HELP

Answer 1

You should definitely get term life insurance PROVIDED that you make good use of the money you save by not getting whole life. Good use would be paying down debt, and saving for retirement. Otherwise you won't see the benefit of term when the policy expires and you're still alive :)

Either way, you agree yo pay the insurance company a fixed amount each month until the term expires, after which time you are no longer covered.

Your figure of $50,000 seems very low. Don't forget to consider paying for at least part of your children's college and upbringing in your absence. The intent of Life Insurance is to provide for your family financially in your absence....

Answer 2

if you are on a tight budget you should purchase term. You can purchase a policy where the premiums remain level for the term of 10 up to 30 years. The longer the term the higher the price. Term can be pretty cheap, for example a 40 year old female can buy $500,000 20 year term for as little as $27 per month. You can cancel the policy at any time. you can run a quote for your state here http://www.insurancemadeeasy.biz/Life.ht...

Answer 3

You will have to speak with an insurance agent regarding their particular policies, but I would suggest a whole life insurance policy.

Don't forget that someone will have to care for your children when you are gone and that will cost lots of money.  I would suggest a bigger policy if you can afford it.

Answer 4

A whole life policy will accumulate savings and interest at the end of a specific number of years.

It is vey expensive compared to Term and term is intended to pay the amount of the policy at death.

Term policies are relatively cheap.  At your age it should only run a few dollars a month.  You would have protection as long as you keep up the payments.  There usually is no cash values, but some policies may have.

Some term policies are reducing amounts over the years with firm payments.  Some will maintain the amount but the premiums may increase.

Term is what most will reccommend, plus you can buy enough to take care of the children as well as debts.

Remember that whole life is expensive and pays the highest commission to the salesman.

Find an agent that you trust to sell you what you want and need.  Check with good friends for references.

Answer 5

Go to Yahoo Finance and click on "Personal Finance."  There is a section there that explains life insurance.  You will get the most "bang for your buck" with a level term policy.

Answer 6

at your age, don't bother with whole life. it doesn't have many benefits besides being able to take out a small amount of the cash you paid into it over the years. you need a term policy that will get you through the next twenty or so years until your children can support themselves. take the extra money that you save on taking the term policy (it will most likely be over a hundred a month) and pay off your bills, or credit cards, or stick that money in your own retirement account. otherwise, you're throwing your own money down the drain giving it to a whole life policy. if you keep it, and grow it, it will eventually replace your need for life insurance at all.